þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-4159663 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | þ | |||
Emerging growth company | ¨ |
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Item 1. | Business |
• | obtained total radio industry listener and revenue levels from the Radio Advertising Bureau; |
• | derived historical market revenue statistics and market revenue share percentages from data published by Miller Kaplan, Arase LLP, a public accounting firm that specializes in serving the broadcasting industry and BIA/Kelsey (“BIA”), a media and telecommunications advisory services firm; and |
• | derived all audience share data and audience rankings, including ranking by population, from surveys of people ages 12 and over, listening Monday through Sunday, 6 a.m. to 12 midnight, as reported in the Nielsen Audio Market Report. |
Amusement and recreation | Banking and mortgage | Healthcare services | ||
Arts and entertainment | Food and beverage | Telecommunications | ||
Automotive | Furniture and home furnishings |
• | a station’s share of audiences and the demographic groups targeted by advertisers (as measured by ratings surveys); |
• | the supply and demand for radio advertising time and for time targeted at particular demographic groups; and |
• | certain additional qualitative factors, such as the brand loyalty of listeners to a specific station. |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Abilene, TX | KBCY FM | Tye, TX | 99.7 | August 1, 2021 | |||||
KCDD FM | Hamlin, TX | 103.7 | August 1, 2021 | ||||||
KHXS FM | Merkel, TX | 102.7 | August 1, 2021 | ||||||
KTLT FM | Anson, TX | 98.1 | August 1, 2021 | ||||||
Albany, GA | WALG AM | Albany, GA | 1590 | April 1, 2020 | |||||
WEGC FM | Sasser, GA | 107.7 | April 1, 2020 | ||||||
WJAD FM | Leesburg, GA | 103.5 | April 1, 2020 | ||||||
WKAK FM | Albany, GA | 104.5 | April 1, 2020 | ||||||
WNUQ FM | Sylvester, GA | 102.1 | April 1, 2020 | ||||||
WQVE FM | Albany, GA | 101.7 | April 1, 2020 | ||||||
Albuquerque, NM | KKOB AM | Albuquerque, NM | 770 | October 1, 2021 | |||||
KKOB FM | Albuquerque, NM | 93.3 | October 1, 2021 | ||||||
KMGA FM | Albuquerque, NM | 99.5 | October 1, 2021 | ||||||
KNML AM | Albuquerque, NM | 610 | October 1, 2021 | ||||||
KRST FM | Albuquerque, NM | 92.3 | October 1, 2021 | ||||||
KTBL AM | Los Ranchos, NM | 1050 | October 1, 2021 | ||||||
KDRF FM | Albuquerque, NM | 103.3 | October 1, 2021 | ||||||
KBZU FM | Albuquerque, NM | 96.3 | October 1, 2012 | ||||||
Allentown, PA | WCTO FM | Easton, PA | 96.1 | August 1, 2022 | |||||
WLEV FM | Allentown, PA | 100.7 | August 1, 2022 | ||||||
Amarillo, TX | KPUR FM | Claude, TX | 95.7 | August 1, 2021 | |||||
KPUR AM | Amarillo, TX | 1440 | August 1, 2021 | ||||||
KARX FM | Canyon, TX | 107.1 | August 1, 2021 | ||||||
KQIZ FM | Amarillo, TX | 93.1 | August 1, 2021 | ||||||
KNSH AM | Canyon, TX | 1550 | August 1, 2021 | ||||||
KZRK FM | Canyon, TX | 107.9 | August 1, 2021 | ||||||
Ann Arbor, MI | WLBY AM | Saline, MI | 1290 | October 1, 2020 | |||||
WQKL FM | Ann Arbor, MI | 107.1 | October 1, 2020 | ||||||
WTKA AM | Ann Arbor, MI | 1050 | October 1, 2020 | ||||||
WWWW FM | Ann Arbor, MI | 102.9 | October 1, 2020 | ||||||
Appleton, WI | WNAM AM | Neenah Menasha, WI | 1280 | December 1, 2020 | |||||
WOSH AM | Oshkosh, WI | 1490 | December 1, 2020 | ||||||
WVBO FM | Winneconne, WI | 103.9 | December 1, 2020 | ||||||
WWWX FM | Oshkosh, WI | 96.9 | December 1, 2020 | ||||||
Atlanta, GA | WKHX FM | Marietta, GA | 101.5 | April 1, 2020 | |||||
WYAY FM | Gainesville, GA | 106.7 | April 1, 2020 | ||||||
WWWQ FM | Atlanta, GA | 99.7 | April 1, 2020 | ||||||
WNNX FM | College Park, GA | 100.5 | April 1, 2020 | ||||||
Baton Rouge, LA | KQXL FM | New Roads, LA | 106.5 | June 1, 2020 | |||||
WRQQ FM | Hammond, LA | 103.3 | June 1, 2020 | ||||||
WEMX FM | Kentwood, LA | 94.1 | June 1, 2020 | ||||||
WIBR AM | Baton Rouge, LA | 1300 | June 1, 2012 | ||||||
WXOK AM | Port Allen, LA | 1460 | June 1, 2020 | ||||||
Beaumont, TX | KAYD FM | Silsbee, TX | 101.7 | August 1, 2021 | |||||
KBED AM | Nederland, TX | 1510 | August 1, 2021 | ||||||
KIKR AM | Beaumont, TX | 1450 | August 1, 2021 | ||||||
KQXY FM | Beaumont, TX | 94.1 | August 1, 2021 | ||||||
KTCX FM | Beaumont, TX | 102.5 | August 1, 2021 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Birmingham, AL | WAPI AM | Birmingham, AL | 1070 | April 1, 2020 | |||||
WJOX AM | Birmingham, AL | 690 | April 1, 2020 | ||||||
WJOX FM | Birmingham, AL | 94.5 | April 1, 2020 | ||||||
WZRR FM | Birmingham, AL | 99.5 | April 1, 2020 | ||||||
WUHT FM | Birmingham, AL | 107.7 | April 1, 2020 | ||||||
WJQX FM | Birmingham, AL | 100.5 | April 1, 2020 | ||||||
Blacksburg, VA | WBRW FM | Blacksburg, VA | 105.3 | October 1, 2019 | |||||
WFNR AM | Blacksburg, VA | 710 | October 1, 2019 | ||||||
WNMX FM | Christiansburg, VA | 100.7 | October 1, 2019 | ||||||
WRAD AM | Radford, VA | 1460 | October 1, 2019 | ||||||
WWBU FM | Radford, VA | 101.7 | October 1, 2019 | ||||||
WPSK FM | Pulaski, VA | 107.1 | October 1, 2019 | ||||||
Bloomington, IL | WBNQ FM | Bloomington, IL | 101.5 | December 1, 2020 | |||||
WBWN FM | Le Roy, IL | 104.1 | December 1, 2020 | ||||||
WJEZ FM | Dwight, IL | 98.9 | December 1, 2020 | ||||||
WJBC AM | Bloomington, IL | 1230 | December 1, 2020 | ||||||
WJBC FM | Pontiac, IL | 93.7 | December 1, 2020 | ||||||
Boise, ID | KBOI AM | Boise, ID | 670 | October 1, 2021 | |||||
KIZN FM | Boise, ID | 92.3 | October 1, 2021 | ||||||
KKGL FM | Nampa, ID | 96.9 | October 1, 2021 | ||||||
KQFC FM | Boise, ID | 97.9 | October 1, 2021 | ||||||
KTIK FM | New Plymouth, ID | 93.1 | October 1, 2021 | ||||||
KTIK AM | Nampa, ID | 1350 | October 1, 2021 | ||||||
Bridgeport, CT | WEBE FM | Westport, CT | 107.9 | April 1, 2022 | |||||
WICC AM | Bridgeport, CT | 600 | April 1, 2022 | ||||||
Buffalo, NY | WEDG FM | Buffalo, NY | 103.3 | June 1, 2022 | |||||
WGRF FM | Buffalo, NY | 96.9 | June 1, 2022 | ||||||
WHLD AM | Niagara Falls, NY | 1270 | June 1, 2022 | ||||||
WHTT FM | Buffalo, NY | 104.1 | June 1, 2022 | ||||||
WBBF AM | Buffalo, NY | 1120 | June 1, 2022 | ||||||
Charleston, SC | WSSX FM | Charleston, SC | 95.1 | December 1, 2019 | |||||
WIWF FM | Charleston, SC | 96.9 | December 1, 2019 | ||||||
WTMA AM | Charleston, SC | 1250 | December 1, 2019 | ||||||
WWWZ FM | Summerville, SC | 93.3 | December 1, 2019 | ||||||
WMGL FM | Ravenel, SC | 107.3 | December 1, 2019 | ||||||
Chattanooga, TN | WGOW AM | Chattanooga, TN | 1150 | August 1, 2020 | |||||
WGOW FM | Soddy-Daisy, TN | 102.3 | August 1, 2020 | ||||||
WOGT FM | East Ridge, TN | 107.9 | August 1, 2020 | ||||||
WSKZ FM | Chattanooga, TN | 106.5 | August 1, 2020 | ||||||
Chicago, IL | WLS AM | Chicago, IL | 890 | December 1, 2020 | |||||
WLS FM | Chicago, IL | 94.7 | December 1, 2020 | ||||||
WKQX FM | Chicago, IL | 101.1 | December 1, 2020 | ||||||
Cincinnati, OH | WNNF FM | Cincinnati, OH | 94.1 | October 1, 2020 | |||||
WOFX FM | Cincinnati, OH | 92.5 | October 1, 2020 | ||||||
WRRM FM | Cincinnati, OH | 98.5 | October 1, 2020 | ||||||
WGRR FM | Hamilton, OH | 103.5 | October 1, 2020 | ||||||
WFTK FM | Lebanon, OH | 96.5 | October 1, 2020 | ||||||
Colorado Springs, CO | KKFM FM | Colorado Springs, CO | 98.1 | April 1, 2021 | |||||
KKMG FM | Pueblo, CO | 98.9 | April 1, 2021 | ||||||
KKPK FM | Colorado Springs, CO | 92.9 | April 1, 2021 | ||||||
KCSF AM | Colorado Springs, CO | 1300 | April 1, 2021 | ||||||
KVOR AM | Colorado Springs, CO | 740 | April 1, 2021 | ||||||
KATC FM | Colorado Springs, CO | 95.1 | April 1, 2021 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Columbia, MO | KBBM FM | Jefferson City, MO | 100.1 | February 1, 2021 | |||||
KBXR FM | Columbia, MO | 102.3 | February 1, 2021 | ||||||
KFRU AM | Columbia, MO | 1400 | February 1, 2021 | ||||||
KJMO FM | Linn, Mo | 97.5 | February 1, 2021 | ||||||
KLIK AM | Jefferson City, MO | 1240 | February 1, 2021 | ||||||
KOQL FM | Ashland, MO | 106.1 | February 1, 2021 | ||||||
KPLA FM | Columbia, MO | 101.5 | February 1, 2021 | ||||||
KZJF FM | Jefferson City, MO | 104.1 | February 1, 2021 | ||||||
Columbia, SC | WISW AM | Columbia, SC | 1320 | December 1, 2019 | |||||
WLXC FM | Columbia, SC | 103.1 | December 1, 2019 | ||||||
WNKT FM | Eastover, SC | 107.5 | December 1, 2019 | ||||||
WOMG FM | Lexington, SC | 98.5 | December 1, 2019 | ||||||
WTCB FM | Orangeburg, SC | 106.7 | December 1, 2019 | ||||||
Columbus-Starkville, MS | WKOR FM | Columbus, MS | 94.9 | June 1, 2020 | |||||
WMXU FM | Starkville, MS | 106.1 | June 1, 2020 | ||||||
WNMQ FM | Columbus, MS | 103.1 | June 1, 2020 | ||||||
WSMS FM | Artesia, MS | 99.9 | June 1, 2020 | ||||||
WSSO AM | Starkville, MS | 1230 | June 1, 2020 | ||||||
Dallas, TX | WBAP AM | Fort Worth, TX | 820 | August 1, 2021 | |||||
KSCS FM | Fort Worth, TX | 96.3 | August 1, 2021 | ||||||
KLIF AM | Dallas, TX | 570 | August 1, 2021 | ||||||
KPLX FM | Fort Worth, TX | 99.5 | August 1, 2021 | ||||||
KLIF FM | Haltom City, TX | 93.3 | August 1, 2021 | ||||||
KTCK AM | Dallas, TX | 1310 | August 1, 2021 | ||||||
KTCK FM | Flower Mound, TX | 96.7 | August 1, 2021 | ||||||
KESN FM | Allen, TX | 103.3 | August 1, 2021 | ||||||
Des Moines, IA | KBGG AM | Des Moines, IA | 1700 | February 1, 2021 | |||||
KHKI FM | Des Moines, IA | 97.3 | February 1, 2021 | ||||||
KGGO FM | Des Moines, IA | 94.9 | February 1, 2021 | ||||||
KJJY FM | West Des Moines, IA | 92.5 | February 1, 2021 | ||||||
KWQW FM | Boone, IA | 98.3 | February 1, 2021 | ||||||
Detroit, MI | WJR AM | Detroit, MI | 760 | October 1, 2020 | |||||
WDVD FM | Detroit, MI | 96.3 | October 1, 2020 | ||||||
WDRQ FM | Detroit, MI | 93.1 | October 1, 2020 | ||||||
Erie, PA | WXKC FM | Erie, PA | 99.9 | August 1, 2022 | |||||
WXTA FM | Edinboro, PA | 97.9 | August 1, 2022 | ||||||
WRIE AM | Erie, PA | 1260 | August 1, 2022 | ||||||
WQHZ FM | Erie, PA | 102.3 | August 1, 2022 | ||||||
Eugene, OR | KEHK FM | Brownsville, OR | 102.3 | February 1, 2022 | |||||
KSCR AM | Eugene, OR | 1320 | February 1, 2022 | ||||||
KUGN AM | Eugene, OR | 590 | February 1, 2022 | ||||||
KUJZ FM | Creswell, OR | 95.3 | February 1, 2022 | ||||||
KZEL FM | Eugene, OR | 96.1 | February 1, 2022 | ||||||
Fayetteville, AR | KAMO FM | Rogers, AR | 94.3 | June 1, 2020 | |||||
KFAY AM | Farmington, AR | 1030 | June 1, 2020 | ||||||
KQSM FM | Fayetteville, AR | 92.1 | June 1, 2020 | ||||||
KMCK FM | Prairie Grove, AR | 105.7 | June 1, 2020 | ||||||
KKEG FM | Bentonville, AR | 98.3 | June 1, 2020 | ||||||
KYNG AM | Springdale, AR | 1590 | June 1, 2020 | ||||||
KRMW FM | Cedarville, AR | 95 | June 1, 2020 | ||||||
Fayetteville, NC | WFNC AM | Fayetteville, NC | 640 | December 1, 2019 | |||||
WMGU FM | Southern Pines, NC | 106.9 | December 1, 2019 | ||||||
WQSM FM | Fayetteville, NC | 98.1 | December 1, 2019 | ||||||
WRCQ FM | Dunn, NC | 103.5 | December 1, 2019 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Flint, MI | WDZZ FM | Flint, MI | 92.7 | October 1, 2020 | |||||
WWCK AM | Flint, MI | 1570 | October 1, 2020 | ||||||
WWCK FM | Flint, MI | 105.5 | October 1, 2020 | ||||||
WFBE FM | Flint, MI | 95.1 | October 1, 2020 | ||||||
WTRX AM | Flint, MI | 1330 | October 1, 2020 | ||||||
Florence, SC | WBZF FM | Hartsville, SC | 98.5 | December 1, 2019 | |||||
WCMG FM | Latta, SC | 94.3 | December 1, 2019 | ||||||
WQPD FM | Marion, SC | 100.5 | December 1, 2019 | ||||||
WMXT FM | Pamplico, SC | 102.1 | December 1, 2019 | ||||||
WWFN FM | Lake City, SC | 100.1 | December 1, 2019 | ||||||
WYMB AM | Manning, SC | 920 | December 1, 2019 | ||||||
WYNN AM | Florence, SC | 540 | December 1, 2019 | ||||||
WYNN FM | Florence, SC | 106.3 | December 1, 2019 | ||||||
Fort Smith, AR | KBBQ FM | Van Buren, AR | 102.7 | June 1, 2020 | |||||
KLSZ FM | Fort Smith, AR | 100.7 | June 1, 2020 | ||||||
KOMS FM | Poteau, OK | 107.3 | June 1, 2021 | ||||||
Fort Walton Beach, FL | WFTW AM | Ft Walton Beach, FL | 1260 | February 1, 2020 | |||||
WKSM FM | Ft Walton Beach, FL | 99.5 | February 1, 2020 | ||||||
WNCV FM | Shalimar, FL | 93.3 | February 1, 2020 | ||||||
WYZB FM | Mary Esther, FL | 105.5 | February 1, 2020 | ||||||
WZNS FM | Ft Walton Beach, FL | 96.5 | February 1, 2020 | ||||||
Fresno, CA | KSKS FM | Fresno, CA | 93.7 | December 1, 2021 | |||||
KMJ FM | Fresno, CA | 105.9 | December 1, 2021 | ||||||
KMJ AM | Fresno, CA | 580.0 | December 1, 2021 | ||||||
KMGV FM | Fresno, CA | 97.9 | December 1, 2021 | ||||||
KWYE FM | Fresno, CA | 101.1 | December 1, 2021 | ||||||
Grand Rapids, MI | WJRW AM | Grand Rapids, MI | 1340 | October 1, 2020 | |||||
WTNR FM | Holland, MI | 94.5 | October 1, 2020 | ||||||
WLAV FM | Grand Rapids, MI | 96.9 | October 1, 2020 | ||||||
WBBL FM | Greenville, MI | 107.3 | October 1, 2020 | ||||||
WHTS FM | Coopersville, MI | 105.3 | October 1, 2020 | ||||||
Green Bay, WI | WDUZ AM | Green Bay, WI | 1400 | December 1, 2020 | |||||
WDUZ FM | Brillion, WI | 107.5 | December 1, 2020 | ||||||
WKRU FM | Allouez, WI | 106.7 | December 1, 2020 | ||||||
WOGB FM | Reedsville, WI | 103.1 | December 1, 2020 | ||||||
WPCK FM | Denmark, WI | 104.9 | December 1, 2020 | ||||||
WQLH FM | Green Bay, WI | 98.5 | December 1, 2020 | ||||||
Harrisburg, PA | WHGB AM | Harrisburg, PA | 1400 | August 1, 2022 | |||||
WNNK FM | Harrisburg, PA | 104.1 | August 1, 2022 | ||||||
WWKL FM | Mechanicsburg, PA | 93.5 | August 1, 2022 | ||||||
WZCY FM | Hershey, PA | 106.7 | August 1, 2022 | ||||||
WQXA FM | York, PA | 105.7 | August 1, 2022 | ||||||
Houston, TX | KRBE FM | Houston, TX | 104.1 | August 1, 2021 | |||||
Huntsville, AL | WHRP FM | Gurley, AL | 94.1 | April 1, 2020 | |||||
WUMP AM | Madison, AL | 730 | April 1, 2020 | ||||||
WVNN AM | Athens, AL | 770 | April 1, 2020 | ||||||
WVNN FM | Trinity, AL | 92.5 | April 1, 2020 | ||||||
WWFF FM | New Market, AL | 93.3 | April 1, 2020 | ||||||
WZYP FM | Athens, AL | 104.3 | April 1, 2020 | ||||||
Indianapolis, IN | WJJK FM | Noblesville, IN | 104.5 | August 1, 2020 | |||||
WFMS FM | Fishers, IN | 95.5 | August 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
WYRG FM | Lawrence, IN | 93.9 | August 1, 2020 | ||||||
Johnson City, TN | WXSM AM | Blountville, TN | 640 | August 1, 2020 | |||||
WJCW AM | Johnson City, TN | 910 | August 1, 2020 | ||||||
WGOC AM | Kingsport, TN | 1320 | August 1, 2020 | ||||||
WKOS FM | Kingsport, TN | 104.9 | August 1, 2020 | ||||||
WQUT FM | Johnson City, TN | 101.5 | August 1, 2020 | ||||||
Kansas City, MO | KCFX FM | Harrisonville, MO | 101.1 | February 1, 2021 | |||||
KCHZ FM | Ottawa, KS | 95.7 | June 1, 2021 | ||||||
KCJK FM | Garden City, MO | 105.1 | February 1, 2021 | ||||||
KCMO AM | Kansas City, MO | 710 | February 1, 2021 | ||||||
KCMO FM | Shawnee, KS | 94.9 | June 1, 2021 | ||||||
KMJK FM | North Kansas City, MO | 107.3 | February 1, 2021 | ||||||
Knoxville, TN | WIVK FM | Knoxville, TN | 107.7 | August 1, 2020 | |||||
WNML AM | Knoxville, TN | 990 | August 1, 2020 | ||||||
WNML FM | Friendsville, TN | 99.1 | August 1, 2020 | ||||||
WOKI FM | Oliver Springs, TN | 98.7 | August 1, 2020 | ||||||
Kokomo, IN | WWKI FM | Kokomo, IN | 100.5 | August 1, 2020 | |||||
Lafayette, LA | KNEK AM | Washington, LA | 1190 | June 1, 2020 | |||||
KRRQ FM | Lafayette, LA | 95.5 | June 1, 2020 | ||||||
KSMB FM | Lafayette, LA | 94.5 | June 1, 2020 | ||||||
KXKC FM | New Iberia, LA | 99.1 | June 1, 2020 | ||||||
KNEK FM | Washington, LA | 104.7 | June 1, 2020 | ||||||
Lake Charles, LA | KAOK AM | Lake Charles, LA | 1400 | June 1, 2020 | |||||
KBIU FM | Lake Charles, LA | 103.3 | June 1, 2020 | ||||||
KKGB FM | Sulphur, LA | 101.3 | June 1, 2020 | ||||||
KQLK FM | DeRidder, LA | 97.9 | June 1, 2020 | ||||||
KXZZ AM | Lake Charles, LA | 1580 | June 1, 2020 | ||||||
KYKZ FM | Lake Charles, LA | 96.1 | June 1, 2020 | ||||||
Lancaster, PA | WIOV FM | Ephrata, PA | 105.1 | August 1, 2022 | |||||
WIOV AM | Reading, PA | 1240 | August 1, 2022 | ||||||
Lexington, KY | WCYN FM | Cynthiana, KY | 102.3 | August 1, 2020 | |||||
WLTO FM | Nicholasville, KY | 102.5 | August 1, 2020 | ||||||
WLXX FM | Lexington, KY | 92.9 | August 1, 2020 | ||||||
WVLK AM | Lexington, KY | 590 | August 1, 2020 | ||||||
WVLK FM | Richmond, KY | 101.5 | August 1, 2020 | ||||||
WXZZ FM | Georgetown, KY | 103.3 | August 1, 2020 | ||||||
Little Rock, AR | KAAY AM | Little Rock, AR | 1090 | June 1, 2020 | |||||
KARN AM | Little Rock, AR | 920 | June 1, 2020 | ||||||
KIPR FM | Pine Bluff, AR | 92.3 | June 1, 2020 | ||||||
KLAL FM | Wrightsville, AR | 107.7 | June 1, 2020 | ||||||
KPZK AM | Little Rock, AR | 1250 | June 1, 2020 | ||||||
KURB FM | Little Rock, AR | 98.5 | June 1, 2020 | ||||||
KARN FM | Sheridan, AR | 102.9 | June 1, 2020 | ||||||
Los Angeles, CA | KABC AM | Los Angeles, CA | 790 | December 1, 2021 | |||||
KLOS FM | Los Angeles, CA | 95.5 | December 1, 2021 | ||||||
Macon, GA | WAYS AM | Macon, GA | 1500 | April 1, 2020 | |||||
WDEN FM | Macon, GA | 99.1 | April 1, 2020 | ||||||
WLZN FM | Macon, GA | 92.3 | April 1, 2020 | ||||||
WMAC AM | Macon, GA | 940 | April 1, 2020 | ||||||
WMGB FM | Montezuma, GA | 95.1 | April 1, 2020 | ||||||
WPEZ FM | Jeffersonville, GA | 93.7 | April 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Melbourne, FL | WAOA FM | Melbourne, FL | 107.1 | February 1, 2020 | |||||
WHKR FM | Rockledge, FL | 102.7 | February 1, 2020 | ||||||
WLZR AM | Melbourne, FL | 1560 | February 1, 2020 | ||||||
WROK-FM | Sebastian, FL | 95.9 | February 1, 2020 | ||||||
Memphis, TN | WRBO FM | Como, MS | 103.5 | June 1, 2020 | |||||
WGKX FM | Memphis, TN | 105.9 | August 1, 2020 | ||||||
WXMX FM | Millington, TN | 98.1 | August 1, 2020 | ||||||
WKIM FM | Munford, TN | 98.9 | August 1, 2020 | ||||||
Minneapolis, MN | KQRS FM | Golden Valley, MN | 92.5 | April 1, 2021 | |||||
KXXR FM | Minneapolis, MN | 93.7 | April 1, 2021 | ||||||
WGVX FM | Lakeville, MN | 105.1 | April 1, 2021 | ||||||
WRXP FM | Cambridge, MN | 105.3 | April 1, 2021 | ||||||
WWWM FM | Eden Prairie, MN | 105.7 | April 1, 2021 | ||||||
Mobile, AL | WBLX FM | Mobile, AL | 92.9 | April 1, 2020 | |||||
WDLT FM | Saraland, AL | 104.1 | April 1, 2020 | ||||||
WGOK AM | Mobile, AL | 900 | April 1, 2020 | ||||||
WXQW AM | Fairhope, AL | 660 | April 1, 2020 | ||||||
WABD FM | Mobile, AL | 97.5 | April 1, 2020 | ||||||
Modesto, CA | KATM FM | Modesto, CA | 103.3 | December 1, 2021 | |||||
KDJK FM | Mariposa, CA | 103.9 | December 1, 2021 | ||||||
KESP AM | Modesto, CA | 970 | December 1, 2021 | ||||||
KHKK FM | Modesto, CA | 104.1 | December 1, 2021 | ||||||
KHOP FM | Oakdale, CA | 95.1 | December 1, 2021 | ||||||
KWNN FM | Turlock, CA | 98.3 | December 1, 2021 | ||||||
Montgomery, AL | WHHY FM | Montgomery, AL | 101.9 | April 1, 2020 | |||||
WLWI AM | Montgomery, AL | 1440 | April 1, 2020 | ||||||
WLWI FM | Montgomery, AL | 92.3 | April 1, 2020 | ||||||
WMSP AM | Montgomery, AL | 740 | April 1, 2020 | ||||||
WMXS FM | Montgomery, AL | 103.3 | April 1, 2020 | ||||||
WXFX FM | Prattville, AL | 95.1 | April 1, 2020 | ||||||
Muncie, IN | WLTI AM | New Castle, IN | 1550 | August 1, 2020 | |||||
WMDH FM | New Castle, IN | 102.5 | August 1, 2020 | ||||||
Muskegon, MI | WLCS FM | North Muskegon, MI | 98.3 | October 1, 2020 | |||||
WKLQ AM | Whitehall, MI | 1490 | October 1, 2020 | ||||||
WVIB FM | Holton, MI | 100.1 | October 1, 2020 | ||||||
WLAW FM | Newaygo, MI | 92.5 | October 1, 2020 | ||||||
WWSN FM | Whitehall, MI | 97.5 | October 1, 2020 | ||||||
Myrtle Beach, SC | WDAI FM | Pawleys Island, SC | 98.5 | December 1, 2011 | |||||
WLFF FM | Georgetown, SC | 106.5 | December 1, 2011 | ||||||
WSEA FM | Atlantic Beach, SC | 100.3 | December 1, 2011 | ||||||
WSYN FM | Surfside Beach, SC | 103.1 | December 1, 2011 | ||||||
WRWM AM | Conway, SC | 1050 | December 1, 2011 | ||||||
Nashville, TN | WQQK FM | Goodlettsville, TN | 92.1 | August 1, 2020 | |||||
WSM FM | Nashville, TN | 95.5 | August 1, 2020 | ||||||
WWTN FM | Hendersonville, TN | 99.7 | August 1, 2020 | ||||||
WGFX FM | Gallatin, TN | 104.5 | August 1, 2020 | ||||||
WKDF FM | Nashville, TN | 103.3 | August 1, 2020 | ||||||
New London, CT | WQGN FM | Groton, CT | 105.5 | April 1, 2022 | |||||
WXLM AM | Groton, CT | 980 | April 1, 2022 | ||||||
WMOS FM | Stonington, CT | 102.3 | April 1, 2022 | ||||||
New Orleans, LA | KMEZ FM | Port Sulphur, LA | 106.7 | June 1, 2020 | |||||
KKND FM | Belle Chasse, LA | 102.9 | June 1, 2020 | ||||||
WRKN FM | Laplace, LA | 92.3 | June 1, 2020 | ||||||
WZRH FM | Picayune, MS | 106.1 | June 1, 2020 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
New York, NY | WABC AM | New York, NY | 770 | June 1, 2022 | |||||
WPLJ FM | New York, NY | 95.5 | June 1, 2022 | ||||||
WNSH FM | Newark, NJ | 94.7 | June 1, 2022 | ||||||
WNBM FM | Bronxville, NY | 103.9 | June 1, 2022 | ||||||
Oklahoma City, OK | KATT FM | Oklahoma City, OK | 100.5 | June 1, 2021 | |||||
KKWD FM | Bethany, OK | 104.9 | June 1, 2021 | ||||||
WWLS FM | The Village, OK | 98.1 | June 1, 2021 | ||||||
KYIS FM | Oklahoma City, OK | 98.9 | June 1, 2021 | ||||||
KWPN AM | Moore, OK | 640 | June 1, 2021 | ||||||
WKY AM | Oklahoma City, OK | 930 | June 1, 2021 | ||||||
KQOB FM | Enid, OK | 96.9 | June 1, 2021 | ||||||
Oxnard-Ventura, CA | KBBY FM | Ventura, CA | 95.1 | December 1, 2021 | |||||
KHAY FM | Ventura, CA | 100.7 | December 1, 2021 | ||||||
KVEN AM | Ventura, CA | 1450 | December 1, 2021 | ||||||
KVYB FM | Santa Barbara, CA | 103.3 | December 1, 2021 | ||||||
Pensacola, FL | WCOA AM | Pensacola, FL | 1370 | February 1, 2020 | |||||
WRRX FM | Gulf Breeze, FL | 106.1 | February 1, 2020 | ||||||
WXBM FM | Milton, FL | 102.7 | February 1, 2020 | ||||||
WMEZ FM | Pensacola, FL | 94.1 | February 1, 2020 | ||||||
WJTQ FM | Pensacola, FL | 100.7 | February 1, 2020 | ||||||
Peoria, IL | WGLO FM | Pekin, IL | 95.5 | December 1, 2020 | |||||
WVEL AM | Pekin, IL | 1140 | December 1, 2020 | ||||||
WIXO FM | Peoria, IL | 105.7 | December 1, 2020 | ||||||
WFYR FM | Elmwood, IL | 97.3 | December 1, 2020 | ||||||
WZPW FM | Peoria, IL | 92.3 | December 1, 2020 | ||||||
Providence, RI | WPRO AM | Providence, RI | 630 | April 1, 2022 | |||||
WPRO FM | Providence, RI | 92.3 | April 1, 2022 | ||||||
WPRV AM | Providence, RI | 790 | April 1, 2022 | ||||||
WEAN FM | Wakefield-Peacedale, RI | 99.7 | April 1, 2022 | ||||||
WWLI FM | Providence, RI | 105.1 | April 1, 2022 | ||||||
WWKX FM | Woonsocket, RI | 106.3 | April 1, 2022 | ||||||
Reno, NV | KBUL FM | Carson City, NV | 98.1 | October 1, 2021 | |||||
KKOH AM | Reno, NV | 780 | October 1, 2021 | ||||||
KNEV FM | Reno, NV | 95.5 | October 1, 2021 | ||||||
KWYL FM | South Lake Tahoe, CA | 102.9 | December 1, 2021 | ||||||
Saginaw, MI | WHNN FM | Bay City, MI | 96.1 | October 1, 2020 | |||||
WILZ FM | Saginaw, MI | 104.5 | October 1, 2020 | ||||||
WIOG FM | Bay City, MI | 102.5 | October 1, 2020 | ||||||
WKQZ FM | Midland, MI | 93.3 | October 1, 2020 | ||||||
Salt Lake City, UT | KKAT AM | Salt Lake City, UT | 860 | October 1, 2021 | |||||
KBEE FM | Salt Lake City, UT | 98.7 | October 1, 2021 | ||||||
KBER FM | Ogden, UT | 101.1 | October 1, 2021 | ||||||
KENZ FM | Provo, UT | 101.9 | October 1, 2021 | ||||||
KHTB FM | Ogden, UT | 94.9 | October 1, 2021 | ||||||
KUBL FM | Salt Lake City, UT | 93.3 | October 1, 2021 | ||||||
KRRF AM | Murray, UT | 1230 | October 1, 2021 | ||||||
San Francisco, CA | KGO AM | San Francisco, CA | 810 | December 1, 2021 | |||||
KSFO AM | San Francisco, CA | 560 | December 1, 2021 | ||||||
KFFG FM | Los Gatos, CA | 97.7 | December 1, 2021 | ||||||
KFOG FM | San Francisco, CA | 104.5 | December 1, 2021 | ||||||
KNBR AM | San Francisco, CA | 680 | December 1, 2021 | ||||||
KSAN FM | San Mateo, CA | 107.7 | December 1, 2021 | ||||||
KTCT AM | San Mateo, CA | 1050 | December 1, 2021 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Santa Barbara, CA | KRUZ FM | Oak View, CA | 106.3 | December 1, 2021 | |||||
Savannah, GA | WBMQ AM | Savannah, GA | 630 | April 1, 2020 | |||||
WEAS FM | Springfield, GA | 93.1 | April 1, 2020 | ||||||
WIXV FM | Savannah, GA | 95.5 | April 1, 2020 | ||||||
WJCL FM | Savannah, GA | 96.5 | April 1, 2020 | ||||||
WJLG AM | Savannah, GA | 900 | April 1, 2020 | ||||||
WZAT FM | Tybee Island, GA | 102.1 | April 1, 2020 | ||||||
WTYB FM | Bluffton, SC | 103.9 | December 1, 2019 | ||||||
Shreveport, LA | KMJJ FM | Shreveport, LA | 99.7 | June 1, 2020 | |||||
KQHN FM | Waskom, TX | 97.3 | August 1, 2021 | ||||||
KRMD AM | Shreveport, LA | 1340 | June 1, 2020 | ||||||
KRMD FM | Oil City, LA | 101.1 | June 1, 2020 | ||||||
KVMA FM | Shreveport, LA | 102.9 | June 1, 2020 | ||||||
Springfield, MA | WHLL AM | Springfield, MA | 1450 | April 1, 2022 | |||||
WMAS FM | Enfield, CT | 94.7 | April 1, 2022 | ||||||
Stockton, CA | KJOY FM | Stockton, CA | 99.3 | December 1, 2021 | |||||
KWIN FM | Lodi, CA | 97.7 | December 1, 2021 | ||||||
Syracuse, NY | WAQX FM | Manlius, NY | 95.7 | June 1, 2022 | |||||
WXTL FM | Syracuse, NY | 105.9 | June 1, 2022 | ||||||
WSKO AM | Syracuse, NY | 1260 | June 1, 2022 | ||||||
WNTQ FM | Syracuse, NY | 93.1 | June 1, 2022 | ||||||
Tallahassee, FL | WBZE FM | Tallahassee, FL | 98.9 | February 1, 2020 | |||||
WGLF FM | Tallahassee, FL | 104.1 | February 1, 2020 | ||||||
WHBT AM | Tallahassee, FL | 1410 | February 1, 2020 | ||||||
WHBX FM | Tallahassee, FL | 96.1 | February 1, 2020 | ||||||
WWLD FM | Cairo, GA | 102.3 | April 1, 2020 | ||||||
Toledo, OH | WKKO FM | Toledo, OH | 99.9 | October 1, 2020 | |||||
WRQN FM | Bowling Green, OH | 93.5 | October 1, 2020 | ||||||
WQQO FM | Sylvania, OH | 105.5 | October 1, 2020 | ||||||
WXKR FM | Port Clinton, OH | 94.5 | October 1, 2020 | ||||||
WTOD FM | Delta, OH | 106.5 | October 1, 2020 | ||||||
WMIM FM | Luna Pier, MI | 98.3 | October 1, 2020 | ||||||
Topeka, KS | KDVB FM | Effingham, KS | 96.9 | June 1, 2021 | |||||
KDVV FM | Topeka, KS | 100.3 | June 1, 2021 | ||||||
KMAJ AM | Topeka, KS | 1440 | June 1, 2021 | ||||||
KMAJ FM | Carbondale, KS | 107.7 | June 1, 2021 | ||||||
KTOP FM | St. Marys, KS | 102.9 | June 1, 2021 | ||||||
KRWP FM | Stockton, MO | 107.7 | February 1, 2021 | ||||||
KTOP AM | Topeka, KS | 1490 | June 1, 2021 | ||||||
KWIC FM | Topeka, KS | 99.3 | June 1, 2021 | ||||||
Tucson, AZ | KCUB AM | Tucson, AZ | 1290 | October 1, 2021 | |||||
KHYT FM | Tucson, AZ | 107.5 | October 1, 2021 | ||||||
KIIM FM | Tucson, AZ | 99.5 | October 1, 2021 | ||||||
KSZR FM | Oro Valley, AZ | 97.5 | October 1, 2021 | ||||||
KTUC AM | Tucson, AZ | 1400 | October 1, 2021 | ||||||
Washington, DC | WMAL AM | Washington, DC | 630 | October 1, 2019 | |||||
WRQX FM | Washington, DC | 107.3 | October 1, 2019 | ||||||
WMAL FM | Woodbridge, VA | 105.9 | October 1, 2019 | ||||||
Westchester, NY | WFAS AM | White Plains, NY | 1230 | June 1, 2022 | |||||
Wichita Falls, TX | KLUR FM | Wichita Falls, TX | 99.9 | August 1, 2021 | |||||
KOLI FM | Electra, TX | 94.9 | August 1, 2021 | ||||||
KQXC FM | Wichita Falls, TX | 103.9 | August 1, 2021 | ||||||
KYYI FM | Burkburnett, TX | 104.7 | August 1, 2021 |
Market | Stations | City of License | Frequency | Expiration Date of License | |||||
Wilkes-Barre, PA | WARM AM | Scranton, PA | 590 | August 1, 2022 | |||||
WBHT FM | Mountain Top, PA | 97.1 | August 1, 2022 | ||||||
WBSX FM | Hazleton, PA | 97.9 | August 1, 2022 | ||||||
WSJR FM | Dallas, PA | 93.7 | August 1, 2022 | ||||||
WBHD FM | Olyphant, PA | 95.7 | August 1, 2022 | ||||||
WMGS FM | Wilkes-Barre, PA | 92.9 | August 1, 2022 | ||||||
Wilmington, NC | WAAV AM | Leland, NC | 980 | December 1, 2019 | |||||
WGNI FM | Wilmington, NC | 102.7 | December 1, 2019 | ||||||
WKXS FM | Leland, NC | 94.5 | December 1, 2019 | ||||||
WMNX FM | Wilmington, NC | 97.3 | December 1, 2019 | ||||||
WWQQ FM | Wilmington, NC | 101.3 | December 1, 2019 | ||||||
Worcester, MA | WORC FM | Webster, MA | 98.9 | April 1, 2022 | |||||
WWFX FM | Southbridge, MA | 100.1 | April 1, 2022 | ||||||
WXLO FM | Fitchburg, MA | 104.5 | April 1, 2022 | ||||||
York, PA | WSOX FM | Red Lion, PA | 96.1 | August 1, 2022 | |||||
WSBA AM | York, PA | 910 | August 1, 2022 | ||||||
WGLD AM | Manchester Township, PA | 1440 | August 1, 2022 | ||||||
WARM FM | York, PA | 103.3 | August 1, 2022 | ||||||
Youngstown, OH | WBBW AM | Youngstown, OH | 1240 | October 1, 2020 | |||||
WHOT FM | Youngstown, OH | 101.1 | October 1, 2020 | ||||||
WLLF FM | Mercer, PA | 96.7 | August 1, 2022 | ||||||
WPIC AM | Sharon, PA | 790 | August 1, 2022 | ||||||
WQXK FM | Salem, OH | 105.1 | October 1, 2020 | ||||||
WSOM AM | Salem, OH | 600 | October 1, 2020 | ||||||
WWIZ FM | West Middlesex, PA | 103.9 | August 1, 2022 | ||||||
WYFM FM | Sharon, PA | 102.9 | August 1, 2022 |
Name | Age | Position(s) | ||
Mary G. Berner | 58 | President and Chief Executive Officer | ||
John Abbot | 55 | Executive Vice President, Treasurer and Chief Financial Officer | ||
Richard S. Denning | 51 | Senior Vice President, Secretary and General Counsel | ||
Suzanne M. Grimes | 59 | Executive Vice President of Corporate Marketing and President of Westwood One |
Item 1A. | Risk Factors |
• | economic conditions in the areas where our stations are located and in the nation as a whole; |
• | national and local demand for radio advertising; |
• | the popularity of the programming offered by our stations; |
• | changes in the population demographics in the areas where our stations are located; |
• | local and national advertising price fluctuations, which can be affected by the availability of programming, the popularity of programming, and the relative supply of and demand for commercial advertising; |
• | the capability and effectiveness of our sales organization; |
• | our competitors’ activities, including increased competition from other advertising-based mediums; |
• | decisions by advertisers to withdraw or delay planned advertising expenditures for any reason; and |
• | other factors beyond our control. |
• | another radio station in the market were to convert its programming format to a format similar to our station or launch aggressive promotional campaigns; |
• | a new station were to adopt a competitive format; |
• | we experience increased competition from non-radio sources; |
• | there is a shift in population, demographics, audience tastes or other factors beyond our control; |
• | an existing competitor were to strengthen its operations; or |
• | any one or all of our stations were unable to maintain or increase advertising revenue or market share for any other reasons. |
• | personal digital audio and video devices (e.g. smart phones, tablets); |
• | satellite delivered digital radio services that offer numerous programming channels such as Sirius Satellite Radio; |
• | audio programming by internet content providers, internet radio stations such as Pandora, cable systems, direct broadcast satellite systems and other digital audio broadcast formats; |
• | low power FM radio stations, which are non-commercial FM radio broadcast outlets that serve small, localized areas; |
• | applications that permit users to listen to programming on a time-delayed basis and to fast-forward through programming and/or advertisements (e.g. podcasts); and |
• | search engine and e-commerce websites where a significant portion of their revenues are derived from advertising dollars such as Google and Yelp. |
• | our achievement of certain expected revenue results, including as a result of factors or events that are unexpected or otherwise outside of our control; |
• | the successful reorganization of our business in chapter 11, or when this reorganization will occur, irrespective of our obtaining confirmation of the Plan; |
• | our capital structure upon any reorganization; |
• | our ability to generate sufficient cash flows to service our debt and other obligations and our ability to access capital, including debt or equity; |
• | general economic or business conditions affecting the radio broadcasting industry which may be less favorable than expected, decreasing spending by advertisers; |
• | changes in market conditions which could impair our goodwill or intangible assets and the effects of any material impairment of our goodwill or intangible assets; |
• | our ability to execute our business plan and strategy; |
• | our ability to attract, motivate and/or retain key executives and associates; |
• | increased competition in the radio broadcasting industry and our ability to respond to changes in technology in order to remain competitive; |
• | disruptions or security breaches of our information technology infrastructure; |
• | the impact of current, pending or future legislation and regulations, antitrust considerations, and pending or future litigation or claims; |
• | changes in regulatory or legislative policies or actions or in regulatory bodies; |
• | changes in uncertain tax positions and tax rates; |
• | changes in the financial markets; |
• | changes in capital expenditure requirements; |
• | changes in interest rates; |
• | the possibility that we may be unable to achieve any expected cost-saving or operational synergies in connection with any acquisitions or business improvement initiatives, or achieve them within the expected time periods; and |
• | other risks and uncertainties referenced from time to time in this Form 10-K and other filings of ours with the SEC or not currently known to us or that we do not currently deem to be material. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Year | High | Low | |||||
2016 | |||||||
First Quarter | $ | 0.60 | $ | 0.18 | |||
Second Quarter | $ | 0.50 | $ | 0.26 | |||
Third Quarter | $ | 0.45 | $ | 0.29 | |||
Fourth Quarter | $ | 2.40 | $ | 0.30 | |||
2017 | |||||||
First Quarter | $ | 1.20 | $ | 0.32 | |||
Second Quarter | $ | 0.84 | $ | 0.22 | |||
Third Quarter | $ | 0.58 | $ | 0.30 | |||
Fourth Quarter | $ | 0.72 | $ | 0.04 |
12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | ||||||||||||||||||
Cumulus (1) | $ | 100.00 | $ | 179.53 | $ | 98.14 | $ | 7.42 | $ | 23.67 | $ | 6.03 | |||||||||||
S&P 500 Index | 100.00 | 146.97 | 163.71 | 162.52 | 178.02 | 223.06 | |||||||||||||||||
NASDAQ Index | 100.00 | 157.44 | 178.53 | 188.75 | 209.51 | 276.22 | |||||||||||||||||
Radio Index (2) | 100.00 | 158.17 | 131.44 | 103.63 | 146.87 | 129.97 |
(1) | As discussed in further detail above, the Company's common stock was delisted from the NASDAQ as of November 21, 2017, as such, the Company's stock price performance was calculated through that date. |
(2) | The Radio Index consists of the following companies: Beasley Broadcast Group, Inc., iHeartMedia, Inc. (formerly Clear Channel Holdings, Inc.), Emmis Communications Corp., Entercom Communications Corp., Urban One, Inc. (formerly Radio One, Inc.), and Saga Communications, Inc. |
Item 6. | Selected Financial Data |
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
STATEMENT OF OPERATIONS DATA: | |||||||||||||||||||
Net revenue | $ | 1,135,662 | $ | 1,141,400 | $ | 1,168,679 | $ | 1,263,423 | $ | 1,026,138 | |||||||||
Content costs | 402,978 | 427,780 | 396,426 | 433,596 | 264,871 | ||||||||||||||
Selling, general & administrative expenses | 477,535 | 472,900 | 477,327 | 470,441 | 403,381 | ||||||||||||||
Depreciation and amortization | 62,239 | 87,267 | 102,105 | 115,275 | 112,511 | ||||||||||||||
LMA fees | 10,884 | 12,824 | 10,129 | 7,195 | 3,716 | ||||||||||||||
Corporate expenses (including non-cash stock-based compensation expense) | 59,062 | 40,148 | 73,403 | 76,428 | 59,830 | ||||||||||||||
(Gain) loss on sale of assets or stations | (2,499 | ) | (95,695 | ) | 2,856 | (1,342 | ) | (3,685 | ) | ||||||||||
Impairment of intangible assets and goodwill (1) | 335,909 | 604,965 | 565,584 | — | — | ||||||||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | — | 19,364 | — | — | ||||||||||||||
Operating (loss) income | (210,446 | ) | (408,789 | ) | (478,515 | ) | 161,830 | 187,366 | |||||||||||
Reorganization items, net (2) | (31,603 | ) | — | — | — | — | |||||||||||||
Interest expense | (126,952 | ) | (138,634 | ) | (141,679 | ) | (145,533 | ) | (178,274 | ) | |||||||||
Interest income | 136 | 493 | 433 | 1,388 | 1,293 | ||||||||||||||
(Loss) gain on early extinguishment of debt | (1,063 | ) | 8,017 | 13,222 | — | (34,934 | ) | ||||||||||||
Other (expense) income, net | (363 | ) | 2,039 | 14,205 | 4,338 | (302 | ) | ||||||||||||
(Loss) income from continuing operations before income taxes | (370,291 | ) | (536,874 | ) | (592,334 | ) | 22,023 | (24,851 | ) | ||||||||||
Income tax benefit (expense) | 163,726 | 26,154 | 45,840 | (10,254 | ) | 68,464 | |||||||||||||
(Loss) income from continuing operations | (206,565 | ) | (510,720 | ) | (546,494 | ) | 11,769 | 43,613 | |||||||||||
Income from discontinued operations, net of taxes | — | — | — | — | 132,470 | ||||||||||||||
Net (loss) income | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | $ | 176,083 | ||||||
Less: dividends declared and accretion of redeemable preferred stock | — | — | — | — | 10,676 | ||||||||||||||
(Loss) income attributable to common shareholders | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | $ | 11,769 | $ | 165,407 | ||||||
Basic (loss) income per common share | $ | (7.05 | ) | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | $ | 6.08 | ||||||
Diluted (loss) income per common share | $ | (7.05 | ) | $ | (17.45 | ) | $ | (18.72 | ) | $ | 0.40 | $ | 6.00 |
Year Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
OTHER DATA: | |||||||||||||||||||||
Cash flows related to: | |||||||||||||||||||||
Operating activities | $ | 86,596 | $ | 35,745 | $ | 82,432 | $ | 136,796 | $ | 121,141 | |||||||||||
Investing activities | (26,816 | ) | 83,854 | (7,961 | ) | (15,572 | ) | (92,625 | ) | ||||||||||||
Financing activities | (88,148 | ) | (19,997 | ) | (50,085 | ) | (146,745 | ) | 83,774 | ||||||||||||
Capital expenditures | (31,932 | ) | (23,037 | ) | (19,236 | ) | (19,006 | ) | (11,081 | ) | |||||||||||
BALANCE SHEET DATA: | |||||||||||||||||||||
Total assets | $ | 2,027,319 | $ | 2,412,691 | $ | 3,002,388 | $ | 3,717,572 | $ | 3,838,128 | |||||||||||
Long-term debt (including current portion) | 2,332,209 | (3 | ) | 2,384,157 | 2,402,901 | 2,457,258 | 2,594,586 | ||||||||||||||
Total stockholders’ (deficit) equity | $ | (696,115 | ) | $ | (491,738 | ) | $ | 16,032 | $ | 541,580 | $ | 512,740 |
(1) | Impairment charges in 2017, 2016 and 2015 were recorded in connection with our interim and annual impairment testing under ASC 350. See Note 4, “Intangible Assets and Goodwill,” in the consolidated financial statements included elsewhere in this Form 10-K for further discussion. |
(2) | Reorganization items recorded in connection with our chapter 11 cases. See Note 9, “Reorganization Items, net,” in the consolidated financial statements included elsewhere in this Form 10-K for further discussion. |
(3) | Long-term debt has been classified in the Company's liabilities subject to compromise as of December 31, 2017. |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | On August 29, 2017, we used proceeds from the sale of certain land and buildings to repay approximately $81.7 million of Term Loan borrowings in accordance with the terms of such agreement. |
• | On October 26, 2017, we appealed NASDAQ's determination to delist the Company's securities from The NASDAQ Capital Market. On November 20, 2017, we received a notification from The NASDAQ Stock Market LLC indicating that as a result of the Company's previously disclosed non-compliance with certain NASDAQ listing rules, trading in the Company’s Class A common stock would be suspended effective at the open of business, on November 22, 2017. The Company's Class A common stock has been quoted on the OTC Markets since such date. |
• | On October 30, 2017, as described above, the Restructuring Committee of the Board of Directors authorized the Company to forgo the November 1, 2017 scheduled interest payment of $23.6 million on the Company's 7.75% Senior Notes. The Company will continue to forgo interest payments on the 7.75% Senior Notes. while under bankruptcy protection. |
• | On November 28, 2017, we voluntarily terminated our $50.0 million revolving accounts receivable securitization facility entered into on December 6, 2013 (the “Securitization Facility”) with Wells Fargo (as successor to General Electric Capital Corporation), as a lender, swing line lender and administrative agent (together with any other lenders party thereto from time to time, the “Lenders”). Pursuant to a Receivables Sale and Servicing Agreement, dated as of December 6, 2013 (the “Sale Agreement”), certain subsidiaries of the Company were eligible to sell and/or contribute their accounts receivable to a special purpose entity and wholly-owned subsidiary of the Company (the “SPV”). The SPV could thereafter make borrowings from the Lenders, which borrowings were secured by those receivables, pursuant to an Amended and Restated Receivables Funding and Administration Agreement, dated as of March 15, 2017 (the “Funding Agreement”). No borrowings were outstanding under the Securitization Facility as of the termination date. |
• | On February 1, 2018, the Company and Merlin Media, LLC ("Merlin") agreed to terminate certain obligations under which the Company was required to purchase two FM stations and to allow the Company to continue to operate those stations under an amended local marketing agreement. Merlin and the Company originally entered into a local marketing agreement relating to these stations on January 2, 2014. Under this local marketing agreement, the Company was responsible for programming two FM radio stations in Chicago, Illinois, for monthly fees payable to Merlin of approximately $0.3 million, $0.4 million, $0.5 million and $0.6 million in the first, second, third and fourth years following October 3, 2014, respectively, in exchange for the Company retaining the operating profits from these radio stations. |
Year Ended December 31, | 2017 vs 2016 | 2016 vs 2015 | |||||||||||||||||||||||
2017 | 2016 | 2015 | $ Change | % Change | $ Change | % Change | |||||||||||||||||||
STATEMENT OF OPERATIONS DATA: | |||||||||||||||||||||||||
Net revenue | $ | 1,135,662 | $ | 1,141,400 | $ | 1,168,679 | $ | (5,738 | ) | -0.5 | % | $ | (27,279 | ) | -2.3 | % | |||||||||
Content costs | 402,978 | 427,780 | 396,426 | (24,802 | ) | -5.8 | % | 31,354 | 7.9 | % | |||||||||||||||
Selling, general & administrative expenses | 477,535 | 472,900 | 477,327 | 4,635 | 1.0 | % | (4,427 | ) | -0.9 | % | |||||||||||||||
Depreciation and amortization | 62,239 | 87,267 | 102,105 | (25,028 | ) | -28.7 | % | (14,838 | ) | -14.5 | % | ||||||||||||||
Local marketing agreement fees | 10,884 | 12,824 | 10,129 | (1,940 | ) | -15.1 | % | 2,695 | 26.6 | % | |||||||||||||||
Corporate expenses (including stock-based compensation expense) | 59,062 | 40,148 | 73,403 | 18,914 | 47.1 | % | (33,255 | ) | -45.3 | % | |||||||||||||||
(Gain) loss on sale of assets or stations | (2,499 | ) | (95,695 | ) | 2,856 | 93,196 | ** | (98,551 | ) | ** | |||||||||||||||
Impairment of intangible assets and goodwill | 335,909 | 604,965 | 565,584 | (269,056 | ) | -44.5 | % | 39,381 | 7.0 | % | |||||||||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | — | 19,364 | — | ** | (19,364 | ) | ** | |||||||||||||||||
Operating loss | (210,446 | ) | (408,789 | ) | (478,515 | ) | 198,343 | -48.5 | % | 69,726 | ** | ||||||||||||||
Reorganization items, net | (31,603 | ) | — | — | ** | ** | ** | ** | |||||||||||||||||
Interest expense | (126,952 | ) | (138,634 | ) | (141,679 | ) | 11,682 | 8.4 | % | 3,045 | 2.1 | % | |||||||||||||
Interest income | 136 | 493 | 433 | (357 | ) | -72.4 | % | 60 | 13.9 | % | |||||||||||||||
(Loss) gain on early extinguishment of debt | (1,063 | ) | 8,017 | 13,222 | (9,080 | ) | ** | (5,205 | ) | -39.4 | % | ||||||||||||||
Other (expense) income, net | (363 | ) | 2,039 | 14,205 | 3 | ** | (12,166 | ) | -85.6 | % | |||||||||||||||
Loss from continuing operations before income taxes | (370,291 | ) | (536,874 | ) | (592,334 | ) | 166,583 | 31.0 | % | 55,460 | 9.4 | % | |||||||||||||
Income tax benefit | 163,726 | 26,154 | 45,840 | 137,572 | ** | (19,686 | ) | -42.9 | % | ||||||||||||||||
Net loss | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | $ | 304,155 | 59.6 | % | $ | 35,774 | 6.5 | % | ||||||||
OTHER DATA: | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 217,751 | $ | 205,867 | $ | 259,145 | $ | 11,884 | 5.8 | % | $ | (53,278 | ) | -20.6 | % |
** | Calculation is not meaningful. |
Year Ended December 31, | 2017 vs 2016 | |||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
7.75% Senior Notes | $ | 43,335 | $ | 47,275 | $ | (3,940 | ) | (8.3 | )% | |||||
Bank borrowings – term loans and revolving credit facilities | 72,362 | 79,451 | (7,089 | ) | (8.9 | )% | ||||||||
Other, including debt issue cost amortization | 11,255 | 11,908 | (653 | ) | (5.5 | )% | ||||||||
Interest expense | $ | 126,952 | $ | 138,634 | $ | (11,682 | ) | (8.4 | )% |
Year Ended December 31, | ||||||||||
2017 | 2016 | % Change | ||||||||
GAAP net loss | $ | (206,565 | ) | $ | (510,720 | ) | 59.6 | % | ||
Income tax benefit | (163,726 | ) | (26,154 | ) | ** | |||||
Non-operating expenses, including net interest expense | 127,179 | 136,102 | (6.6 | )% | ||||||
Local marketing agreement fees | 10,884 | 12,824 | (15.1 | )% | ||||||
Depreciation and amortization | 62,239 | 87,267 | (28.7 | )% | ||||||
Stock-based compensation expense | 1,614 | 2,948 | (45.3 | )% | ||||||
Gain on sale of assets or stations | (2,499 | ) | (95,695 | ) | (97.4 | )% | ||||
Impairment of intangible assets and goodwill | 335,909 | 604,965 | ** | |||||||
Reorganization items, net | 31,603 | — | ** | |||||||
Acquisition-related and restructuring costs | 19,492 | 1,817 | ** | |||||||
Franchise and state taxes | 558 | 530 | 5.3 | % | ||||||
Loss (gain) on early extinguishment of debt | 1,063 | (8,017 | ) | ** | ||||||
Adjusted EBITDA | $ | 217,751 | $ | 205,867 | 5.8 | % | ||||
** Calculation is not meaningful |
Year Ended December 31, | 2016 vs 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
7.75% Senior Notes | $ | 47,275 | $ | 47,275 | $ | — | — | % | ||||||
Bank borrowings — term loans and revolving credit facilities | 79,451 | 82,031 | (2,580 | ) | (3.1 | )% | ||||||||
Other, including debt issue cost amortization | 11,908 | 12,373 | (465 | ) | (3.8 | )% | ||||||||
Interest expense | $ | 138,634 | $ | 141,679 | $ | (3,045 | ) | (2.1 | )% | |||||
** Calculation is not meaningful |
Year Ended December 31, | ||||||||||
2016 | 2015 | % Change | ||||||||
GAAP net loss | $ | (510,720 | ) | $ | (546,494 | ) | (6.5 | )% | ||
Income tax benefit | (26,154 | ) | (45,840 | ) | (42.9 | )% | ||||
Non-operating expenses, including net interest expense | 136,102 | 127,041 | 7.1 | % | ||||||
Local marketing agreement fees | 12,824 | 10,129 | 26.6 | % | ||||||
Depreciation and amortization | 87,267 | 102,105 | (14.5 | )% | ||||||
Stock-based compensation expense | 2,948 | 21,033 | (86.0 | )% | ||||||
(Gain) loss on sale of assets or stations | (95,695 | ) | 2,856 | ** | ||||||
Impairment of intangible assets and goodwill | 604,965 | 565,584 | 7.0 | % | ||||||
Impairment charges -- equity interest in Pulser Media Inc | — | 19,364 | ** | |||||||
Acquisition-related and restructuring costs | 1,817 | 16,640 | (89.1 | )% | ||||||
Franchise and state taxes | 530 | (51 | ) | ** | ||||||
Gain on early extinguishment of debt | (8,017 | ) | (13,222 | ) | (39.4 | )% | ||||
Adjusted EBITDA | $ | 205,867 | $ | 259,145 | (20.6 | )% | ||||
** Calculation is not meaningful |
Year Ended December 31, 2017 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 786,963 | $ | 346,165 | $ | 2,534 | $ | 1,135,662 | ||||||||
% of total revenue | 69.3 | % | 30.5 | % | 0.2 | % | 100.0 | % | ||||||||
$ change from year ended December 31, 2016 | $ | (15,433 | ) | $ | 9,555 | $ | 140 | $ | (5,738 | ) | ||||||
% change from year ended December 31, 2016 | (1.9 | )% | 2.8 | % | 5.8 | % | (0.5 | )% |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 802,396 | $ | 336,610 | $ | 2,394 | $ | 1,141,400 | ||||||||
% of total revenue | 70.3 | % | 29.5 | % | 0.2 | % | 100.0 | % |
Year Ended December 31, 2017 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 204,588 | $ | 51,034 | $ | (37,871 | ) | $ | 217,751 | |||||||
$ change from year ended December 31, 2016 | $ | (13,604 | ) | $ | 28,050 | $ | (2,562 | ) | $ | 11,884 | ||||||
% change from year ended December 31, 2016 | (6.2 | )% | 122.0 | % | (7.3 | )% | 5.8 | % |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 218,192 | $ | 22,984 | $ | (35,309 | ) | $ | 205,867 |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 802,396 | $336,610 | $ | 2,394 | $ | 1,141,400 | |||||||||
% of total revenue | 70.3 | % | 29.5 | % | 0.2 | % | 100.0 | % | ||||||||
$ Change from year ended December 31, 2015 | $ | 6,013 | $ | (32,358 | ) | $ | (934 | ) | $ | (27,279 | ) | |||||
% Change from year ended December 31, 2015 | 0.8 | % | (8.8 | )% | (28.1 | )% | (2.3 | )% |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 796,383 | $ | 368,968 | $ | 3,328 | $ | 1,168,679 | ||||||||
% of total revenue | 68.1 | % | 31.6 | % | 0.3 | % | 100.0 | % |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 218,192 | $ | 22,984 | $ | (35,309 | ) | $ | 205,867 | |||||||
$ change from year ended December 31, 2015 | $ | (23,481 | ) | $ | (29,974 | ) | $ | 177 | $ | (53,278 | ) | |||||
% change from year ended December 31, 2015 | (9.7 | )% | (56.6 | )% | 0.5 | % | (20.6 | )% |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Adjusted EBITDA | $ | 241,673 | $ | 52,958 | $ | (35,486 | ) | $ | 259,145 |
Year Ended December 31, 2017 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
GAAP net (loss) income | $ | (178,410 | ) | $ | 25,635 | $ | (53,790 | ) | $ | (206,565 | ) | |||||
Income tax benefit | — | — | (163,726 | ) | (163,726 | ) | ||||||||||
Non-operating (income) expense, including net interest expense | (6 | ) | 537 | 126,648 | 127,179 | |||||||||||
Local marketing agreement fees | 10,884 | — | — | 10,884 | ||||||||||||
Depreciation and amortization | 38,734 | 21,836 | 1,669 | 62,239 | ||||||||||||
Stock-based compensation expense | — | — | 1,614 | 1,614 | ||||||||||||
(Gain) loss on sale of assets or stations | (2,523 | ) | — | 24 | (2,499 | ) | ||||||||||
Reorganization items, net | — | — | 31,603 | 31,603 | ||||||||||||
Impairment of intangible assets | 335,909 | — | — | 335,909 | ||||||||||||
Loss on early extinguishment of debt | — | — | 1,063 | 1,063 | ||||||||||||
Acquisition-related and restructuring costs | — | 3,026 | 16,466 | 19,492 | ||||||||||||
Franchise and state taxes | — | — | 558 | 558 | ||||||||||||
Adjusted EBITDA | $ | 204,588 | $ | 51,034 | $ | (37,871 | ) | $ | 217,751 |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
GAAP net loss | $ | (356,198 | ) | $ | (11,071 | ) | $ | (143,451 | ) | $ | (510,720 | ) | ||||
Income tax benefit | — | — | (26,154 | ) | (26,154 | ) | ||||||||||
Non-operating expense, including net interest expense | 13 | 122 | 135,967 | 136,102 | ||||||||||||
Local marketing agreement fees | 12,824 | — | — | 12,824 | ||||||||||||
Depreciation and amortization | 54,071 | 31,178 | 2,018 | 87,267 | ||||||||||||
Stock-based compensation expense | — | — | 2,948 | 2,948 | ||||||||||||
Gain on sale of assets or stations | (95,667 | ) | — | (28 | ) | (95,695 | ) | |||||||||
Impairment of intangible assets and goodwill | 603,149 | 1,816 | — | 604,965 | ||||||||||||
Acquisition-related and restructuring costs | — | 939 | 878 | 1,817 | ||||||||||||
Franchise and state taxes | — | — | 530 | 530 | ||||||||||||
Gain on early extinguishment of debt | — | — | (8,017 | ) | (8,017 | ) | ||||||||||
Adjusted EBITDA | $ | 218,192 | $ | 22,984 | $ | (35,309 | ) | $ | 205,867 |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
GAAP net loss | $ | (265,263 | ) | $ | (141,179 | ) | $ | (140,052 | ) | $ | (546,494 | ) | ||||
Income tax benefit | — | — | (45,840 | ) | (45,840 | ) | ||||||||||
Non-operating (income) expense, including net interest expense | (6 | ) | 1,247 | 125,800 | 127,041 | |||||||||||
Local marketing agreement fees | 10,127 | — | 2 | 10,129 | ||||||||||||
Depreciation and amortization | 63,342 | 36,538 | 2,225 | 102,105 | ||||||||||||
Stock-based compensation expense | — | — | 21,035 | 21,035 | ||||||||||||
Loss on sale of assets or stations | 668 | 2,081 | 107 | 2,856 | ||||||||||||
Impairment of intangible assets | 432,805 | 132,671 | 104 | 565,580 | ||||||||||||
Impairment charges -- equity interest in Pulser Media Inc. | — | 19,364 | — | 19,364 | ||||||||||||
Acquisition-related and restructuring costs | — | 2,236 | 14,405 | 16,641 | ||||||||||||
Franchise and state taxes | — | — | (50 | ) | (50 | ) | ||||||||||
Gain on early extinguishment of debt | — | — | (13,222 | ) | (13,222 | ) | ||||||||||
Adjusted EBITDA | $ | 241,673 | $ | 52,958 | $ | (35,486 | ) | $ | 259,145 |
2017 | 2016 | 2015 | |||||||||
Repayments of borrowings under term loans and revolving credit facilities | $ | 81,652 | $ | 20,000 | $ | 50,000 | |||||
Interest payments | 96,225 | $ | 126,515 | $ | 129,314 | ||||||
Capital expenditures | 31,932 | $ | 23,037 | $ | 19,236 |
2017 | 2016 | 2015 | |||||||||
Net cash provided by operating activities | $ | 86,596 | $ | 35,745 | $ | 82,432 |
2017 | 2016 | 2015 | ||||||||
Net cash (used in) provided by investing activities | (26,816 | ) | $ | 83,854 | $ | (7,961 | ) |
2017 | 2016 | 2015 | ||||||||
Net cash used in financing activities | (88,148 | ) | $ | (19,997 | ) | $ | (50,085 | ) |
Reporting Unit 2 | |||
Goodwill balance | $ | 135,214 | |
Carrying value (including goodwill) | $ | 313,572 | |
Percentage fair value above carrying value | 36.9 | % |
• | projected operating revenues and expenses over a five-year period; |
• | the estimation of initial and on-going capital expenditures (based on market size); |
• | depreciation on initial and on-going capital expenditures (we calculated depreciation using accelerated double declining balance guidelines over five years for the value of the tangible assets necessary for a radio station to go on the air); |
• | the estimation of working capital requirements (based on working capital requirements for comparable companies); and |
• | amortization of the intangible asset — the FCC license. |
l | Nature, frequency, and severity of current and cumulative financial reporting losses. A pattern of objectively-measured recent financial reporting losses is heavily weighted as a source of negative evidence. Three year cumulative pre-tax losses generally are considered to be significant negative evidence regarding future profitability. Also, the strength and trend of the Company's earnings, as well as other relevant factors, are considered. In certain circumstances, historical information may not be as relevant because of changes in the business operations; | |||
l | Sources of future taxable income. Future reversals of existing temporary differences are heavily-weighted sources of objectively verifiable positive evidence. Projections of future taxable income exclusive of reversing temporary differences and carryforwards are a source of positive evidence only when the projections are combined with a history of recent profits and can be reasonably estimated. Otherwise, these projections are considered inherently subjective and generally will not be sufficient to overcome negative evidence that includes relevant cumulative losses in recent years, particularly if the projected future taxable income is dependent on an anticipated turnaround to profitability that has not yet been achieved. In such cases, we generally give these projections of future taxable income limited weight for the purposes of our valuation allowance assessment pursuant to GAAP; | |||
l | Taxable income in prior carryback year(s), if carryback is permitted under the tax law, would be considered significant positive evidence, depending on availability, when evaluating current period losses; and | |||
l | Tax planning strategies. If necessary and available, tax planning strategies would be implemented to accelerate taxable amounts to utilize expiring carry forwards. These strategies would be a source of additional positive evidence and, depending on their nature, could be heavily weighted. |
Contractual Cash Obligations | Total | Less Than 1 Year | 1 to 3 Years | 3 to 5 years | After 5 Years | ||||||||||||||
Long-term debt (1) | $ | 2,597,786 | $ | 730,741 | $ | 1,867,045 | $ | — | $ | — | |||||||||
Operating leases (2) | 110,805 | 22,740 | 34,913 | 22,841 | 30,311 | ||||||||||||||
Other contractual obligations (3) | 371,288 | 96,079 | 133,567 | 115,842 | 25,800 | ||||||||||||||
Total contractual cash obligations | $ | 3,079,879 | $ | 849,560 | $ | 2,035,525 | $ | 138,683 | $ | 56,111 |
(1) | Based on amounts outstanding, interest rates and required repayments as of December 31, 2017. Assumes that outstanding indebtedness will not be refinanced prior to scheduled maturity. |
(2) | Net of future minimum sublease income. |
(3) | Consists of contractual obligations for goods or services including broadcast rights that are enforceable and legally binding obligations that include all significant terms. |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
/s/ Mary G. Berner | /s/ John Abbot |
President, Chief Executive Officer and Director | Executive Vice President, Treasurer and Chief Financial Officer |
Item 9B. | Other Information |
Item 10. | Directors and Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan Category | To be Issued Upon Exercise of Outstanding Options Warrants and Rights (a) | Weighted-Average Exercise Price of Outstanding Options Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a)) | ||||||
Equity Compensation Plans Approved by Stockholders | 2,509,129 | $ | 36.04 | 1,445,225 | |||||
Equity Compensation Plans Not Approved by Stockholders | — | — | — | ||||||
Total | 2,509,129 | $ | 36.04 | 1,445,225 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits, Financial Statement Schedules |
Third Amended and Restated Certificate of Incorporation of Cumulus Media Inc., as amended effective as of October 12, 2016 (incorporated by reference to Exhibit 3.1 to Cumulus Media Inc.’s Annual Report on Form 10-K, File No. 000-24525, filed on March 16, 2017). | ||
Second Amended and Restated By-laws of Cumulus Media Inc. (incorporated by reference to Exhibit 3.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 2, 2017). | ||
Certificate of Designations of Series R Preferred Stock of Cumulus Media Inc., as filed with the Secretary of State of the State of Delaware on June 5, 2017 (incorporated by reference to Exhibit 3.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 5, 2017) | ||
Form of Class A Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on August 2, 2002). | ||
Form of Class B Common Stock Certificate (incorporated by reference to Exhibit 4.2 to Amendment No. 1 to Cumulus Media Inc.’s Registration Statement on Form S-3/A, File No. 333-176294, filed on September 22, 2011). | ||
Warrant Agreement, dated as of June 29, 2009, among Cumulus Media Inc., the Consenting Lenders signatory thereto and Lewis W. Dickey, Sr., Lewis W. Dickey, Jr., John W. Dickey, Michael W. Dickey, David W. Dickey, Lewis W. Dickey, Sr. Revocable Trust and DBBC, LLC (incorporated by reference to Exhibit 10.2 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 30, 2009). | ||
Form of Warrant Certificate (incorporated by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 30, 2009). | ||
Warrant Agreement, dated as of September 16, 2011, between Cumulus Media Inc., Computershare Inc. and Computershare Trust Company, N.A., as Warrant Agent (incorporated by reference to Exhibit 4.2 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Form of Warrant Statement (included as Exhibit A-1 in Exhibit 4.5) (incorporated by reference to Exhibit 4.3 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Form of Global Warrant Certificate (included as Exhibit A-2 in Exhibit 4.5) (incorporated by reference to Exhibit 4.4 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Warrant, dated as of September 16, 2011, issued to Crestview Radio Investors, LLC (incorporated herein by reference to Exhibit 4.5 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Registration Rights Agreement, effective as of August 1, 2011, by and among Cumulus Media Inc. and the stockholders (as defined therein) that are parties thereto (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on August 4, 2011). | ||
Registration Rights Agreement, effective as of September 16, 2011, by and among Cumulus Media Inc., Crestview Radio Investors, LLC, UBS Securities LLC and other investors signatory thereto (incorporated herein by reference to Exhibit 10.5 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Stockholders’ Agreement, dated as of September 16, 2011, among Cumulus Media Inc., BA Capital Company, L.P. and Banc of America Capital Investors SBIC, L.P., Blackstone FC Communications Partners L.P., Lewis W. Dickey, Jr., John W. Dickey, David W. Dickey, Michael W. Dickey, Lewis W. Dickey, Sr. and DBBC, L.L.C., Crestview Radio Investors, LLC, MIHI LLC, UBS Securities LLC and any other person who becomes a party thereto (incorporated herein by reference to Exhibit 10.6 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Indenture, dated as of May 13, 2011, among Cumulus Media Inc., the Guarantors named therein and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8- K, File No. 000-24525, filed on May 16, 2011). | ||
Form of 7.75% Senior Notes due 2019 (included as Exhibits A and B in Exhibit 4.15) (incorporated herein by reference to Exhibit 4.3 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on May 16, 2011). | ||
First Supplemental Indenture, dated as of September 16, 2011, by and among Cumulus Media Holdings Inc., Cumulus Media Inc., the other parties signatory thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | ||
Second Supplemental Indenture, dated as of October 16, 2011, by and among Cumulus Media Holdings Inc., each of the subsidiaries of Cumulus Media Holdings Inc. signatory thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.12 to Cumulus Media Inc.’s Quarterly Report on Form 10-Q, File No. 000-24525, filed on November 14, 2011). | ||
Third Supplemental Indenture, effective October 17, 2011, by and among Cumulus Media Holdings Inc., each of the subsidiaries of Cumulus Media Holdings Inc. signatory thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.5 to Cumulus Media Inc. Registration Statement on Form S-4/A, File No. 333-178647, filed on March 5, 2012). | ||
Fourth Supplemental Indenture, dated as of December 23, 2013, by and among Cumulus Media Holdings Inc., each of the subsidiaries of Cumulus Media Holdings Inc. signatory thereto and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.17 to Cumulus Media Inc.'s Annual Report on Form 10-K, File No. 000-24525, filed on March 17, 2014). | ||
First Amendment to Stockholders' Agreement, dated April 27, 2015 (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.'s Current Report on Form 8-K, File No. 000-24525, filed with the SEC on April 29, 2015). | ||
Rights Agreement, dated as of June 5, 2017, between Cumulus Media Inc. and Computershare Trust Company, N.A., as Rights Agent (incorporated by reference to Exhibit 4.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on June 5, 2017). | ||
10.1 * | Form of Employment Agreement, dated September 29, 2015, by and between the Company and Mary G. Berner (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on September 30, 2015). | |
10.2 * | Form of Amendment to Stock Option Award Certificate, dated September 29, 2015, by and between Lewis W. Dickey, Jr. and the Company (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed with the SEC on September 30, 2015). | |
10.3 * | Form of Non Qualified Stock Option Agreement as of October 13, 2015, by and between the Company and Mary G. Berner (incorporated by reference to Exhibit A to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on September 30, 2015) | |
10.4 * | Form of Stock Option Award Certificate (incorporated herein by reference to Exhibit (d)(8) to Cumulus Media Inc.’s Schedule TO-I, File No. 005-54277, filed on December 1, 2008). | |
10.5 * | Form of 2008 Equity Incentive Plan Restricted Stock Agreement (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on March 4, 2009). | |
10.6 * | Form of 2008 Equity Incentive Plan Stock Option Award Agreement (incorporated by reference to Exhibit 10.14 to Cumulus Media Inc.’s Annual Report on Form 10-K, File No. 000-24525, filed on March 16, 2009). | |
10.7 * | Cumulus Media Inc. 2011 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.7 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
10.8 * | Form of Nonqualified Stock Option Agreement (incorporated herein by reference to Exhibit 10.8 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on September 22, 2011). | |
10.9 * | Form of Non-employee Director Restricted Stock Agreement under the Cumulus Media Inc. 2011 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Cumulus Media Inc.’s Quarterly Report on Form 10-Q, File No. 000- 24525, filed on May 7, 2012). | |
10.10 * | Form of Employment Agreement with certain executive officers, dated as of November 29, 2011 (incorporated herein by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24525, filed on December 2, 2011). | |
10.11 ** | Description of 2017 Non-Equity Incentive Plans | |
10.12 ** | Description of 2018 Non-Equity Incentive Plans | |
Amended and Restated Credit Agreement, dated as of December 23, 2013, among Cumulus Media Inc., Cumulus Media Holdings Inc., as Borrower, certain lenders, JPMorgan Chase Bank, N.A., as lender and Administrative Agent, Royal Bank of Canada and Macquarie Capital (USA) Inc., as co-syndication agents, and Credit Suisse AG, Cayman Islands Branch, Fifth Third Bank, Goldman Sachs Bank USA and ING Capital LLC, as co-documentation agents (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.’s Current Report on Form 8-K, File No. 000-24545, filed on December 23, 2013). | ||
First Lien Guarantee and Collateral Agreement, dated as of September 16, 2011, made by Cumulus Media Inc., Cumulus Media Holdings Inc. and certain subsidiaries of Cumulus Media Inc. in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated herein by reference to Exhibit 10.3 to Cumulus Media Inc.’s Current Report on Form 8- K, File No. 000-24525, filed on September 22, 2011). | ||
10.15 * | First Amendment to Employment Agreement, dated April 18, 2015, between Lewis W. Dickey, Jr. and Cumulus Media Inc. (incorporated by reference to Exhibit 10.2 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on April 28, 2015). | |
10.16 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Richard S. Denning (incorporated by reference to Exhibit 10.2 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.17 * | Second Amendment to Employment Agreement, dated August 26, 2016, by and between Cumulus Media Inc. and Richard S. Denning (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.'s Quarterly Report on Form 10-Q filed with the SEC on March 31, 2016). | |
10.18 ** | Third Amendment to Employment Agreement, dated October 25, 2017, by and between Cumulus Media Inc. and Richard S. Denning. | |
10.19 * | Employment Agreement, dated July 1, 2016, by and between Cumulus Media Inc. and John Abbot (incorporated by reference to Exhibit 10.18 to Cumulus Media Inc.’s Annual Report on Form 10-K, File No. 000-24525, filed on March 16, 2017). | |
10.20 ** | Amended and Restated Employment Agreement, dated October 25, 2017, by and between Cumulus Media Inc. and John Abbot. | |
10.21 * | Employment Agreement, dated as of December 13, 2015, by and between Cumulus Media Inc. and Suzanne Grimes (incorporated by reference to Exhibit 10.3 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.22 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Suzanne Grimes (incorporated by reference to Exhibit 10.4 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.23 * | Second Amendment to Employment Agreement, dated January 26, 2018, by and between Cumulus Media Inc. and Suzanne Grimes (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on February 1, 2018). | |
10.24 * | First Amendment to Employment Agreement, dated March 30, 2016, by and between Cumulus Media Inc. and Mary G. Berner (incorporated by reference to Exhibit 10.5 to Cumulus Media Inc.'s Current Report on Form 8-K filed with the SEC on March 31, 2016). | |
10.25 ** | Second Amendment to Employment Agreement, dated October 26, 2017, by and between Cumulus Media Inc. and Mary Berner. | |
10.26 * | Form of Indemnification Agreement with directors and certain executive officers (incorporated by reference to Exhibit 10.23 to Cumulus Media Inc.’s Annual Report on Form 10-K, File No. 000-24525, filed on March 16, 2017). | |
Amended and Restated Receivables Funding and Administration Agreement, dated as of March 15, 2017 (incorporated by reference to Exhibit 10.1 to Cumulus Media Inc.’s Quarterly Report on Form 10-Q, File No. 000-24525, filed on May 15, 2017). | ||
12.1 ** | Computation of Ratio of Earnings to Fixed Charges. | |
21.1 ** | Subsidiaries. | |
23.1 ** | Consent of PricewaterhouseCoopers LLP. | |
31.1 ** | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 ** | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 ** | Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | INS XBRL Instance Document. | |
101.SCH | SCH XBRL Taxonomy Extension Schema Document. | |
101.CAL | CAL XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | DEF XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | LAB XBRL Taxonomy Extension Labels Linkbase Document. | |
101.PRE | PRE XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Management contract or compensatory plan or arrangement. |
** | Filed or furnished herewith. |
(b) | Exhibits. See Exhibits above. |
(c) | Financial Statement Schedules. Schedule II – Valuation and Qualifying Accounts. |
Item 16. | Form 10-K Summary |
CUMULUS MEDIA INC. | |||
By | /s/ John Abbot | ||
John Abbot Executive Vice President, Treasurer and Chief Financial Officer |
Signature | Title | Date | ||
/s/ Mary G. Berner | President, Chief Executive Officer and | March 28, 2018 | ||
Mary G. Berner | Director | |||
/s/ John Abbot | Executive Vice President, Treasurer and | March 28, 2018 | ||
John Abbot | Chief Financial Officer (Principal Financial and Accounting Officer) | |||
/s/ Jeffrey Marcus | Director | March 28, 2018 | ||
Jeffrey Marcus | ||||
/s/ Jan Baker | Director | March 28, 2018 | ||
Jan Baker | ||||
/s/ Jill Bright | Director | March 28, 2018 | ||
Jill Bright | ||||
/s/ Ralph B. Everett | Director | March 28, 2018 | ||
Ralph B. Everett | ||||
/s/ Ross Oliver | Director | March 28, 2018 | ||
Ross Oliver | ||||
Page | ||
(1) | Financial Statements | |
(2) | Financial Statement Schedule | |
2017 | 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 102,891 | $ | 131,259 | |||
Restricted cash | 8,999 | 8,025 | |||||
Accounts receivable, less allowance for doubtful accounts of $4,322 and $4,691 in 2017 and 2016, respectively | 235,247 | 231,585 | |||||
Trade receivable | 4,224 | 4,985 | |||||
Assets held for sale | — | 30,150 | |||||
Prepaid expenses and other current assets | 42,259 | 33,923 | |||||
Total current assets | 393,620 | 439,927 | |||||
Property and equipment, net | 191,604 | 162,063 | |||||
Broadcast licenses | 1,203,809 | 1,540,183 | |||||
Other intangible assets, net | 82,994 | 116,499 | |||||
Goodwill | 135,214 | 135,214 | |||||
Other assets | 20,078 | 18,805 | |||||
Total assets | $ | 2,027,319 | $ | 2,412,691 | |||
Liabilities and Stockholders’ Deficit | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 36,157 | $ | 96,241 | |||
Trade payable | — | 4,550 | |||||
Total current liabilities not subject to compromise | 36,157 | 100,791 | |||||
Term loan, net of debt issuance costs/discounts of $29,909 at December 31, 2016 | — | 1,780,357 | |||||
7.75% senior notes, net of debt issuance costs of $6,200 at December 31, 2016 | — | 603,800 | |||||
Other liabilities | 54 | 31,431 | |||||
Deferred income taxes | — | 388,050 | |||||
Total liabilities not subject to compromise | 36,211 | 2,904,429 | |||||
Liabilities subject to compromise | 2,687,223 | — | |||||
Total liabilities | 2,723,434 | 2,904,429 | |||||
Commitments and Contingencies (Note 15) | |||||||
Stockholders’ deficit: | |||||||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 32,031,054 shares issued, and 29,225765 shares outstanding, at both 2017 and 2016 | 320 | 320 | |||||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding at both 2017 and 2016 | 1 | 1 | |||||
Treasury stock, at cost, 2,806,187 shares at both 2017 and 2016 | (229,310 | ) | (229,310 | ) | |||
Additional paid-in-capital | 1,626,428 | 1,624,815 | |||||
Accumulated deficit | (2,093,554 | ) | (1,887,564 | ) | |||
Total stockholders’ deficit | (696,115 | ) | (491,738 | ) | |||
Total liabilities and stockholders’ deficit | $ | 2,027,319 | $ | 2,412,691 |
2017 | 2016 | 2015 | |||||||||
Net revenue | $ | 1,135,662 | $ | 1,141,400 | $ | 1,168,679 | |||||
Operating expenses: | |||||||||||
Content costs | 402,978 | 427,780 | 396,426 | ||||||||
Selling, general & administrative expenses | 477,535 | 472,900 | 477,327 | ||||||||
Depreciation and amortization | 62,239 | 87,267 | 102,105 | ||||||||
LMA fees | 10,884 | 12,824 | 10,129 | ||||||||
Corporate expenses (including stock-based compensation expense of $1,614, $2,948, and $21,033, respectively) | 59,062 | 40,148 | 73,403 | ||||||||
(Gain) loss on sale of assets or stations | (2,499 | ) | (95,695 | ) | 2,856 | ||||||
Impairment of intangible assets and goodwill | 335,909 | 604,965 | 565,584 | ||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | — | 19,364 | ||||||||
Total operating expenses | 1,346,108 | 1,550,189 | 1,647,194 | ||||||||
Operating loss | (210,446 | ) | (408,789 | ) | (478,515 | ) | |||||
Non-operating expense: | |||||||||||
Reorganization items, net | (31,603 | ) | — | — | |||||||
Interest expense | (126,952 | ) | (138,634 | ) | (141,679 | ) | |||||
Interest income | 136 | 493 | 433 | ||||||||
(Loss) gain on early extinguishment of debt | (1,063 | ) | 8,017 | 13,222 | |||||||
Other (expense) income, net | (363 | ) | 2,039 | 14,205 | |||||||
Total non-operating expense, net | (159,845 | ) | (128,085 | ) | (113,819 | ) | |||||
Loss before income taxes | (370,291 | ) | (536,874 | ) | (592,334 | ) | |||||
Income tax benefit | 163,726 | 26,154 | 45,840 | ||||||||
Net loss | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | ||
Basic and diluted loss per common share (see Note 13, “Loss Per Share”): | |||||||||||
Basic: Loss per share | $ | (7.05 | ) | $ | (17.45 | ) | $ | (18.72 | ) | ||
Diluted: Loss per share | $ | (7.05 | ) | $ | (17.45 | ) | $ | (18.72 | ) | ||
Weighted average basic common shares outstanding | 29,306,374 | 29,270,455 | 29,176,930 | ||||||||
Weighted average diluted common shares outstanding | 29,306,374 | 29,270,455 | 29,176,930 |
Class A Common Stock | Class C Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Par Value | Number of Shares | Value | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Balance at December 31, 2014 | 31,874,741 | $ | 319 | 80,609 | $ | 1 | 2,827,444 | $ | (231,588 | ) | $ | 1,603,198 | $ | (830,350 | ) | $ | 541,580 | |||||||||||||||
Net loss | (546,494 | ) | (546,494 | ) | ||||||||||||||||||||||||||||
Conversion of equity upon exercise of warrants | 113,121 | 1 | — | — | 6,288 | (115 | ) | 120 | — | 6 | ||||||||||||||||||||||
Shares returned in lieu of tax payments | — | — | — | — | — | (93 | ) | — | — | (93 | ) | |||||||||||||||||||||
Restricted shares issued from treasury | — | — | — | — | (27,989 | ) | 2,486 | (2,486 | ) | — | — | |||||||||||||||||||||
Stock conversion | — | — | — | — | — | — | 21,033 | — | 21,033 | |||||||||||||||||||||||
Balance at December 31, 2015 | 31,987,862 | $ | 320 | 80,609 | $ | 1 | 2,805,743 | $ | (229,310 | ) | $ | 1,621,865 | $ | (1,376,844 | ) | $ | 16,032 | |||||||||||||||
Net loss | (510,720 | ) | (510,720 | ) | ||||||||||||||||||||||||||||
Conversion of equity upon exercise of warrants | 43,192 | — | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | 2,948 | — | 2,948 | |||||||||||||||||||||||
Other | — | — | — | — | 444 | — | — | — | — | |||||||||||||||||||||||
Balance at December 31, 2016 | 32,031,054 | $ | 320 | 80,609 | $ | 1 | 2,806,187 | $ | (229,310 | ) | $ | 1,624,815 | $ | (1,887,564 | ) | $ | (491,738 | ) | ||||||||||||||
Net loss | (206,565 | ) | (206,565 | ) | ||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | 1,614 | — | 1,614 | |||||||||||||||||||||||
Other | — | — | — | — | — | — | (1 | ) | 575 | 574 | ||||||||||||||||||||||
Balance at December 31, 2017 | 32,031,054 | $ | 320 | 80,609 | $ | 1 | 2,806,187 | $ | (229,310 | ) | $ | 1,626,428 | $ | (2,093,554 | ) | $ | (696,115 | ) |
2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 62,239 | 87,267 | 102,105 | ||||||||
Amortization of debt issuance costs/discounts | 9,394 | 9,961 | 9,541 | ||||||||
Provision for doubtful accounts | 5,807 | 1,103 | 4,501 | ||||||||
(Gain) loss on sale of assets or stations | (2,499 | ) | (95,695 | ) | 2,856 | ||||||
Non-cash reorganization items, net | 25,921 | — | — | ||||||||
Impairment of intangible assets and goodwill | 335,909 | 604,965 | 565,584 | ||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | — | 19,364 | ||||||||
Deferred income taxes | (168,226 | ) | (27,831 | ) | (48,262 | ) | |||||
Stock-based compensation expense | 1,614 | 2,948 | 21,033 | ||||||||
Loss (gain) on early extinguishment of debt | 1,063 | (8,017 | ) | (13,222 | ) | ||||||
Changes in assets and liabilities (excluding acquisitions and dispositions): | |||||||||||
Accounts receivable | (9,469 | ) | 10,740 | 371 | |||||||
Trade receivable | 761 | (839 | ) | (1,691 | ) | ||||||
Prepaid expenses and other current assets | (7,655 | ) | (7,017 | ) | 16,983 | ||||||
Other assets | (1,451 | ) | (1,106 | ) | (6,208 | ) | |||||
Accounts payable and accrued expenses | 46,587 | (16,816 | ) | (34,122 | ) | ||||||
Trade payable | (1,486 | ) | 176 | 410 | |||||||
Other liabilities | (5,348 | ) | (13,374 | ) | (10,317 | ) | |||||
Net cash provided by operating activities | 86,596 | 35,745 | 82,432 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale of assets or stations | 6,090 | 106,935 | 9,201 | ||||||||
Restricted cash | (974 | ) | (44 | ) | 2,074 | ||||||
Capital expenditures | (31,932 | ) | (23,037 | ) | (19,236 | ) | |||||
Net cash used in investing activities | (26,816 | ) | 83,854 | (7,961 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Repayment of borrowings under term loan and revolving credit facilities | (81,652 | ) | (20,000 | ) | (50,000 | ) | |||||
Adequate protection payments on term loan | (6,405 | ) | — | — | |||||||
Tax withholding payments on behalf of employees | — | — | (93 | ) | |||||||
Proceeds from exercise of warrants | — | 3 | 8 | ||||||||
Deferred financing costs | (91 | ) | — | — | |||||||
Net cash (used in) provided by financing activities | (88,148 | ) | (19,997 | ) | (50,085 | ) | |||||
(Decrease) increase in cash and cash equivalents | (28,368 | ) | 99,602 | 24,386 | |||||||
Cash and cash equivalents at beginning of period | 131,259 | 31,657 | 7,271 | ||||||||
Cash and cash equivalents at end of period | $ | 102,891 | $ | 131,259 | $ | 31,657 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest paid | $ | 96,225 | $ | 126,515 | $ | 129,314 | |||||
Income taxes paid | $ | 3,781 | $ | 4,451 | $ | 2,620 | |||||
Supplemental disclosures of non-cash flow information: | |||||||||||
Trade revenue | $ | 40,080 | $ | 37,691 | $ | 39,237 | |||||
Trade expense | $ | 38,633 | $ | 36,158 | $ | 40,427 | |||||
Transfer of property and equipment from assets held for sale | $ | 30,150 | $ | — | $ | — | |||||
Equity interest in Pulser Media, Inc. | $ | — | $ | — | $ | 2,025 | |||||
Transfer of deposit from escrow - Los Angeles land and building sale | $ | — | $ | 6,000 | $ | — |
l | Reclassification of pre-petition liabilities that are unsecured, under-secured or where it cannot be determined that the liabilities are fully secured to a separate line item in the Consolidated Balance Sheet called Liabilities Subject to Compromise; and | |||
l | Segregation of reorganization items as a separate line in the Consolidated Statement of Operations outside of income from continuing operations. |
• | The Company made a correction of an immaterial misstatement that occurred in periods prior thereto, which resulted in an increase in content costs of $3.6 million in the second quarter of 2016. The correction related to the Radio Station Group segment only and was not material to the prior year quarterly or annual results. |
• | The Company made a correction of an immaterial Balance Sheet misclassification that occurred in periods prior thereto, which resulted in an increase in cash and accrued liabilities of approximately $2.6 million as of December 31, 2017. The correction was not material to the prior year quarterly or annual results. |
Estimated Useful Life | 2017 | 2016 | |||||||
Land | $ | 90,482 | $ | 63,484 | |||||
Broadcasting and other equipment | 3 to 30 years | 240,740 | 234,760 | ||||||
Computer and capitalized software costs | 1 to 3 years | 29,793 | 29,591 | ||||||
Furniture and fixtures | 5 years | 15,278 | 14,899 | ||||||
Leasehold improvements | 5 years | 42,504 | 40,242 | ||||||
Buildings | 9 to 20 years | 47,375 | 46,351 | ||||||
Construction in progress | 32,463 | 14,036 | |||||||
498,635 | 443,363 | ||||||||
Less: accumulated depreciation | (307,031 | ) | (281,300 | ) | |||||
$ | 191,604 | $ | 162,063 |
Goodwill: | |||
Balance as of December 31, 2016: | |||
Goodwill | $ | 1,278,526 | |
Accumulated impairment losses | (1,278,526 | ) | |
Total | $ | — | |
Balance as of December 31, 2017: | |||
Goodwill | 1,278,526 | ||
Accumulated impairment losses | (1,278,526 | ) | |
Total | $ | — |
Goodwill: | |||
Balance as of December 31, 2016: | |||
Goodwill | $ | 304,280 | |
Accumulated impairment losses | (169,066 | ) | |
Total | $ | 135,214 | |
Balance as of December 31, 2017: | |||
Goodwill | 304,280 | ||
Accumulated impairment losses | (169,066 | ) | |
Total | $ | 135,214 |
Goodwill: | |||
Balance as of December 31, 2016: | |||
Goodwill | $ | 1,582,806 | |
Accumulated impairment losses | (1,447,592 | ) | |
Total | $ | 135,214 | |
Balance as of December 31, 2017: | |||
Goodwill | 1,582,806 | ||
Accumulated impairment losses | (1,447,592 | ) | |
Total | $ | 135,214 |
FCC Licenses | Definite-Lived | Total | |||||||||
Intangible Assets: | |||||||||||
Balance as of January 1, 2016 | $ | 1,578,066 | $ | 174,530 | $ | 1,752,596 | |||||
Impairment | (35,000 | ) | (1,816 | ) | (36,816 | ) | |||||
Disposition | (2,883 | ) | — | (2,883 | ) | ||||||
Amortization | — | (56,215 | ) | (56,215 | ) | ||||||
Balance as of December 31, 2016 | $ | 1,540,183 | $ | 116,499 | $ | 1,656,682 | |||||
Balance as of January 1, 2017 | $ | 1,540,183 | $ | 116,499 | $ | 1,656,682 | |||||
Impairment | (335,909 | ) | — | (335,909 | ) | ||||||
Disposition | (465 | ) | — | (465 | ) | ||||||
Amortization | — | (33,505 | ) | (33,505 | ) | ||||||
Balance as of December 31, 2017 | $ | 1,203,809 | $ | 82,994 | $ | 1,286,803 |
2018 | $ | 18,201 | |
2019 | 17,257 | ||
2020 | 17,197 | ||
2021 | 17,114 | ||
2022 | 12,843 | ||
Thereafter | 382 | ||
Total other intangibles, net | $ | 82,994 |
Reporting Unit 2 | |||
Goodwill balance | $ | 135,214 | |
Carrying value (including goodwill) | $ | 313,572 | |
Percentage fair value above carrying value | 36.9 | % |
• | projected operating revenues and expenses over a five-year period; |
• | the estimation of initial and on-going capital expenditures (based on market size); |
• | depreciation on initial and on-going capital expenditures (the Company calculated depreciation using accelerated double declining balance guidelines over five years for the value of the tangible assets necessary for a radio station to go on the air); |
• | the estimation of working capital requirements (based on working capital requirements for comparable companies); and |
• | amortization of the intangible asset — the FCC license. |
December 31, 2017 | December 31, 2016 | ||||||
Accrued employee costs | $ | 9,528 | $ | 30,887 | |||
Accrued third party content costs | 5,205 | 29,285 | |||||
Accrued interest | — | 8,334 | |||||
Accounts payable | 1,928 | 12,739 | |||||
Accrued other | 19,496 | 14,996 | |||||
Total accounts payable and accrued expenses | $ | 36,157 | $ | 96,241 |
December 31, 2017 | December 31, 2016 | ||||||
Term Loan | $ | 1,722,209 | $ | 1,810,266 | |||
Less: unamortized term loan discount and debt issuance costs | — | (29,909 | ) | ||||
Total term loan | 1,722,209 | 1,780,357 | |||||
7.75% Senior Notes | 610,000 | 610,000 | |||||
Less: unamortized debt issuance costs | — | (6,200 | ) | ||||
Total 7.75% Senior Notes | 610,000 | 603,800 | |||||
Less: Current portion of long-term debt | — | — | |||||
Long-term debt, net subject to compromise | $ | 2,332,209 | $ | 2,384,157 | |||
Less: Amounts reclassified to liabilities subject to compromise | (2,332,209 | ) | — | ||||
Long-term debt, net | $ | — | $ | 2,384,157 |
2018 | $ | — | |
2019 | 610,000 | ||
2020 | 1,722,209 | ||
$ | 2,332,209 |
December 31, 2017 | December 31, 2016 | |||||
Term Loan: | ||||||
Carrying value | 1,722,209 | $ | 1,810,266 | |||
Fair value — Level 2 | 1,481,100 | 1,226,455 | ||||
7.75% Senior Notes: | ||||||
Carrying value | 610,000 | $ | 610,000 | |||
Fair value — Level 2 | 105,988 | 249,673 |
December 31, 2017 | |||
Deferred income taxes | $ | 219,250 | |
Accrued liabilities and other liabilities | 89,897 | ||
Accounts payable | 18,290 | ||
Accounts payable, accrued and other liabilities | 327,437 | ||
Term Loan | 1,722,209 | ||
7.75% Senior Notes | 610,000 | ||
Accrued interest | 27,577 | ||
Long-Term Debt and accrued interest | 2,359,786 | ||
Total liabilities subject to compromise | $ | 2,687,223 |
2017 | |||
Deferred financing costs and term loan discount | $ | 25,921 | |
Professional fees | 5,682 | ||
Reorganization items, net | $ | 31,603 |
• | Voting Rights. The holders of shares of Class A common stock are entitled to one vote per share on any matter submitted to a vote of the stockholders of the Company, and the holders of shares of Class C common stock are entitled to ten votes for each share of Class C common stock held. Generally, the holders of shares of Class B common stock are not entitled to vote on any matter. However, holders of Class B common stock and Class C common stock are entitled to a separate class vote on any amendment or modification of any specific rights or obligations of the holders of Class B common stock or Class C common stock, respectively, that does not similarly affect the rights or obligations of the holders of Class A common stock. The holders of Class A common stock and of Class C common stock vote together, as a single class, on all matters submitted to a vote to the stockholders of the Company. |
• | Conversion. Each holder of Class B common stock and Class C common stock is entitled to convert at any time all or any part of such holder’s shares into an equal number of shares of Class A common stock; provided, however, that to the extent that such conversion would result in the holder holding more than 4.99% of the Class A common stock following such conversion, the holder will first be required to deliver to the Company an ownership certification to enable the Company to (a) determine that such ownership does not violate applicable FCC rules and regulations and (b) obtain any necessary approvals from the FCC or the Department of Justice. There were no shares of Class B common stock issued or outstanding as of December 31, 2017 or 2016. |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Options to Purchase Class A Common Stock | ||||||||||||
Outstanding at January 1, 2017 | 3,472,455 | $ | 31.46 | |||||||||
Granted | 76,250 | 0.98 | ||||||||||
Exercised | — | — | ||||||||||
Forfeited/Canceled | (1,039,576 | ) | 18.16 | |||||||||
Expired | — | — | ||||||||||
Outstanding at December 31, 2017 | 2,509,129 | $ | 36.04 | 4.68 | $ | 584 | ||||||
Vested or expected to vest at December 31, 2017 | 2,509,129 | $ | 36.04 | 4.68 | $ | 8,258 | ||||||
Exercisable at December 31, 2017 | 2,356,173 | $ | 37.78 | 4.44 | $ | 666 |
2017 | 2016 | 2015 | ||||||||||
Current income tax expense | ||||||||||||
State and local | $ | 4,504 | $ | 1,678 | $ | 2,422 | ||||||
Total current income tax | $ | 4,504 | $ | 1,678 | $ | 2,422 | ||||||
Deferred tax benefit | ||||||||||||
Federal | $ | (157,277 | ) | $ | (19,496 | ) | $ | (48,123 | ) | |||
State and local | (10,953 | ) | (8,336 | ) | (139 | ) | ||||||
Total deferred tax | (168,230 | ) | (27,832 | ) | (48,262 | ) | ||||||
Total income tax benefit | $ | (163,726 | ) | $ | (26,154 | ) | $ | (45,840 | ) |
2017 | 2016 | 2015 | ||||||||||
Pretax loss at federal statutory rate | $ | (129,602 | ) | $ | (187,906 | ) | $ | (207,317 | ) | |||
State income tax, net federal | (11,729 | ) | (1,812 | ) | (1,385 | ) | ||||||
Meals and entertainment | 350 | 429 | 380 | |||||||||
Bankruptcy costs | 5,478 | — | — | |||||||||
Change in state tax rates | 255 | (1,618 | ) | 1,605 | ||||||||
Section 162 disallowance | 1,867 | 538 | 110 | |||||||||
Change in federal tax rate | (91,384 | ) | — | — | ||||||||
Impairment charges on goodwill with no tax basis | — | 163,630 | 153,371 | |||||||||
Increase in valuation allowance | 58,254 | 32 | 190 | |||||||||
Other | 2,785 | 553 | 7,206 | |||||||||
Net income tax benefit | $ | (163,726 | ) | $ | (26,154 | ) | $ | (45,840 | ) |
2017 | 2016 | ||||||
Noncurrent deferred tax assets: | |||||||
Accounts receivable | $ | 948 | $ | 1,422 | |||
Advertising relationships | 954 | 2,548 | |||||
Other liabilities | 20,486 | 27,014 | |||||
Debt costs | 6,987 | — | |||||
Tax credits | 2,249 | 2,042 | |||||
Net operating loss | 75,832 | 111,778 | |||||
Noncurrent deferred tax assets | 107,456 | 144,804 | |||||
Less: valuation allowance | (75,460 | ) | (17,205 | ) | |||
Net noncurrent deferred tax assets | 31,996 | 127,599 | |||||
Noncurrent deferred tax liabilities: | |||||||
Intangible assets | 242,822 | 482,620 | |||||
Property and equipment | 8,417 | 20,485 | |||||
Cancellation of debt income | — | 12,544 | |||||
Other | 7 | — | |||||
Noncurrent deferred tax liabilities | 251,246 | 515,649 | |||||
Net noncurrent deferred tax liabilities | 219,250 | 388,050 | |||||
Net deferred tax liabilities | $ | 219,250 | $ | 388,050 |
Balance at January 1, 2016 | $ | 12,629 | ||
Increase for prior year positions | 275 | |||
Lapse of statute of limitations | (1,014 | ) | ||
Balance at December 31, 2016 | $ | 11,890 | ||
Increase for prior year positions | 447 | |||
Decrease for prior year positions | (3,316 | ) | ||
Lapse of statute of limitations | (434 | ) | ||
Balance at December 31, 2017 | $ | 8,587 |
2017 | 2016 | 2015 | |||||||||
Basic Loss Per Share | |||||||||||
Numerator: | |||||||||||
Undistributed net loss from operations | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | ||
Basic undistributed net loss from operations — attributable to common shares | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | ||
Denominator: | |||||||||||
Basic weighted average common shares outstanding | 29,306 | 29,270 | 29,177 | ||||||||
Basic loss from operations per share — attributable to common shares | $ | (7.05 | ) | $ | (17.45 | ) | $ | (18.72 | ) | ||
Diluted Loss Per Share | |||||||||||
Numerator: | |||||||||||
Undistributed net loss from operations | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | ||
Basic undistributed net loss from operations — attributable to common shares | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) | ||
Denominator: | |||||||||||
Basic weighted average shares outstanding | 29,306 | 29,270 | 29,177 | ||||||||
Effect of dilutive options and warrants | — | — | — | ||||||||
Diluted weighted average shares outstanding | 29,306 | 29,270 | 29,177 | ||||||||
Diluted loss from operations per share — attributable to common shares | $ | (7.05 | ) | $ | (17.45 | ) | $ | (18.72 | ) |
Year Ending December 31: | Future Minimum Rent Under Operating Leases | Future Minimum Sublease Income | Future Minimum Commitments Under Sale Leaseback Agreement | Net Commitments | ||||||||||||
2018 | $ | 23,768 | $ | (1,028 | ) | $ | 1,153 | $ | 23,893 | |||||||
2019 | 20,596 | (1,028 | ) | 1,193 | 20,761 | |||||||||||
2020 | 16,373 | (1,028 | ) | 15,345 | ||||||||||||
2021 | 13,028 | (1,028 | ) | 12,000 | ||||||||||||
2022 | 11,869 | (1,028 | ) | 10,841 | ||||||||||||
Thereafter | 31,596 | (1,285 | ) | 30,311 | ||||||||||||
$ | 117,230 | $ | (6,425 | ) | $ | 2,346 | $ | 113,151 |
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2017 | |||||||||||||||
Net revenue | $ | 264,030 | $ | 290,531 | $ | 287,240 | $ | 293,861 | |||||||
Operating income (loss) | $ | 20,522 | $ | 47,326 | $ | 42,931 | $ | (321,225 | ) | ||||||
(Loss) income before income taxes | $ | (13,421 | ) | $ | 12,906 | $ | 6,531 | $ | (376,307 | ) | |||||
Net (loss) income | $ | (7,395 | ) | $ | 5,672 | $ | 1,274 | $ | (206,116 | ) | |||||
Basic: | |||||||||||||||
(Loss) income per share | $ | (0.25 | ) | $ | 0.19 | $ | 0.04 | $ | (7.03 | ) | |||||
Diluted: | |||||||||||||||
(Loss) income per share | $ | (0.25 | ) | $ | 0.19 | $ | 0.04 | $ | (7.03 | ) | |||||
FOR THE YEAR ENDED DECEMBER 31, 2016 | |||||||||||||||
Net revenue | $ | 268,530 | $ | 287,193 | $ | 286,136 | $ | 299,541 | |||||||
Operating income (loss) | $ | 10,114 | $ | 36,665 | $ | 113,017 | $ | (568,585 | ) | ||||||
(Loss) income before income taxes | $ | (23,562 | ) | $ | 2,315 | $ | 79,109 | $ | (594,736 | ) | |||||
Net (loss) income | $ | (14,429 | ) | $ | 1,066 | $ | 46,321 | $ | (543,677 | ) | |||||
Basic: | |||||||||||||||
(Loss) income per share | $ | (0.49 | ) | $ | 0.04 | $ | 1.58 | $ | (18.57 | ) | |||||
Diluted: | |||||||||||||||
(Loss) income per share | $ | (0.49 | ) | $ | 0.04 | $ | 1.58 | $ | (18.57 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 1,135,662 | $ | — | $ | — | $ | 1,135,662 | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Content costs | — | — | 402,978 | — | — | 402,978 | |||||||||||||||||
Selling, general & administrative expenses | — | — | 475,116 | 2,419 | — | 477,535 | |||||||||||||||||
Depreciation and amortization | — | 1,193 | 61,046 | — | — | 62,239 | |||||||||||||||||
LMA fees | — | — | 10,884 | — | — | 10,884 | |||||||||||||||||
Corporate expenses (including stock-based compensation expense of $1,614) | — | 59,062 | — | — | — | 59,062 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (2,499 | ) | — | — | (2,499 | ) | |||||||||||||||
Impairment of intangible assets and goodwill | — | — | — | 335,909 | — | 335,909 | |||||||||||||||||
Total operating expenses | — | 60,255 | 947,525 | 338,328 | — | 1,346,108 | |||||||||||||||||
Operating loss | — | (60,255 | ) | 188,137 | (338,328 | ) | — | (210,446 | ) | ||||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Reorganization items, net | — | (31,603 | ) | — | — | — | (31,603 | ) | |||||||||||||||
Interest (expense) income | (8,735 | ) | (118,217 | ) | 136 | — | — | (126,816 | ) | ||||||||||||||
Loss on early extinguishment of debt | — | (1,063 | ) | — | — | — | (1,063 | ) | |||||||||||||||
Other loss, net | — | — | (363 | ) | — | — | (363 | ) | |||||||||||||||
Total non-operating expense, net | (8,735 | ) | (150,883 | ) | (227 | ) | — | — | (159,845 | ) | |||||||||||||
(Loss) income before income taxes | (8,735 | ) | (211,138 | ) | 187,910 | (338,328 | ) | — | (370,291 | ) | |||||||||||||
Income tax benefit | 2,516 | 60,808 | 2,964 | 97,438 | — | 163,726 | |||||||||||||||||
(Loss) earnings from consolidated subsidiaries | (200,346 | ) | (50,016 | ) | (240,890 | ) | — | 491,252 | — | ||||||||||||||
Net (loss) income | $ | (206,565 | ) | $ | (200,346 | ) | $ | (50,016 | ) | $ | (240,890 | ) | $ | 491,252 | $ | (206,565 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | 165 | $ | 1,141,235 | $ | — | $ | — | $ | 1,141,400 | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Content costs | — | — | 427,780 | — | — | 427,780 | |||||||||||||||||
Selling, general & administrative expenses | — | — | 470,546 | 2,354 | — | 472,900 | |||||||||||||||||
Depreciation and amortization | — | 1,530 | 85,737 | — | — | 87,267 | |||||||||||||||||
LMA fees | — | — | 12,824 | — | — | 12,824 | |||||||||||||||||
Corporate expenses (including stock-based compensation expense of $2,948) | — | 40,148 | — | — | — | 40,148 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (95,695 | ) | — | — | (95,695 | ) | |||||||||||||||
Impairment of intangible assets and goodwill | — | — | 604,965 | — | — | 604,965 | |||||||||||||||||
Total operating expenses | — | 41,678 | 1,506,157 | 2,354 | — | 1,550,189 | |||||||||||||||||
Operating loss | — | (41,513 | ) | (364,922 | ) | (2,354 | ) | — | (408,789 | ) | |||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | (8,711 | ) | (129,733 | ) | 493 | (190 | ) | — | (138,141 | ) | |||||||||||||
Gain on early extinguishment of debt | — | 8,017 | — | — | — | 8,017 | |||||||||||||||||
Other income, net | — | — | 2,039 | — | — | 2,039 | |||||||||||||||||
Total non-operating (expense) income, net | (8,711 | ) | (121,716 | ) | 2,532 | (190 | ) | — | (128,085 | ) | |||||||||||||
Loss before income taxes | (8,711 | ) | (163,229 | ) | (362,390 | ) | (2,544 | ) | — | (536,874 | ) | ||||||||||||
Income tax benefit (expense) | 3,484 | 65,292 | (43,640 | ) | 1,018 | — | 26,154 | ||||||||||||||||
Loss from continuing operations | (5,227 | ) | (97,937 | ) | (406,030 | ) | (1,526 | ) | — | (510,720 | ) | ||||||||||||
(Loss) earnings from consolidated subsidiaries | (505,493 | ) | (407,556 | ) | (1,526 | ) | — | 914,575 | — | ||||||||||||||
Net (loss) income | $ | (510,720 | ) | $ | (505,493 | ) | $ | (407,556 | ) | $ | (1,526 | ) | $ | 914,575 | $ | (510,720 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | 500 | $ | 1,168,179 | $ | — | $ | — | $ | 1,168,679 | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Content costs | — | — | 396,426 | — | — | 396,426 | |||||||||||||||||
Selling, general & administrative expenses | — | — | 475,268 | 2,059 | — | 477,327 | |||||||||||||||||
Depreciation and amortization | — | 1,525 | 100,580 | — | — | 102,105 | |||||||||||||||||
LMA fees | — | — | 10,129 | — | — | 10,129 | |||||||||||||||||
Corporate expenses (including stock-based compensation expense of $21,033) | — | 73,403 | — | — | — | 73,403 | |||||||||||||||||
Loss on sale of assets or stations | — | — | 2,856 | — | — | 2,856 | |||||||||||||||||
Impairment of intangible assets and goodwill | — | — | 565,584 | — | — | 565,584 | |||||||||||||||||
Impairment charges - equity interest Pulser Media Inc. | 19,364 | 19,364 | |||||||||||||||||||||
Total operating expenses | — | 74,928 | 1,570,207 | 2,059 | — | 1,647,194 | |||||||||||||||||
Operating loss | — | (74,428 | ) | (402,028 | ) | (2,059 | ) | — | (478,515 | ) | |||||||||||||
Non-operating (expense) income: | |||||||||||||||||||||||
Interest (expense) income, net | (8,735 | ) | (132,754 | ) | 433 | (190 | ) | — | (141,246 | ) | |||||||||||||
Gain on early extinguishment of debt | — | 13,222 | — | — | — | 13,222 | |||||||||||||||||
Other income, net | — | — | 14,205 | — | — | 14,205 | |||||||||||||||||
Total non-operating (expense) income, net | (8,735 | ) | (119,532 | ) | 14,638 | (190 | ) | — | (113,819 | ) | |||||||||||||
Loss from continuing operations before income taxes | (8,735 | ) | (193,960 | ) | (387,390 | ) | (2,249 | ) | — | (592,334 | ) | ||||||||||||
Income tax benefit (expense) | 3,494 | 77,584 | (36,138 | ) | 900 | — | 45,840 | ||||||||||||||||
Loss from continuing operations | (5,241 | ) | (116,376 | ) | (423,528 | ) | (1,349 | ) | — | (546,494 | ) | ||||||||||||
(Loss) earnings from consolidated subsidiaries | (541,253 | ) | (424,877 | ) | (1,349 | ) | — | 967,479 | — | ||||||||||||||
Net (loss) income | $ | (546,494 | ) | $ | (541,253 | ) | $ | (424,877 | ) | $ | (1,349 | ) | $ | 967,479 | $ | (546,494 | ) |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 102,891 | $ | — | $ | — | $ | — | $ | 102,891 | |||||||||||
Restricted cash | — | 8,999 | — | — | — | 8,999 | |||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $4,322 | — | — | 235,247 | — | — | 235,247 | |||||||||||||||||
Trade receivable | — | — | 4,224 | — | — | 4,224 | |||||||||||||||||
Prepaid expenses and other current assets | — | 25,393 | 16,866 | — | — | 42,259 | |||||||||||||||||
Total current assets | — | 137,283 | 256,337 | — | — | 393,620 | |||||||||||||||||
Property and equipment, net | — | 14,404 | 177,200 | — | — | 191,604 | |||||||||||||||||
Broadcast licenses | — | — | — | 1,203,809 | — | 1,203,809 | |||||||||||||||||
Other intangible assets, net | — | — | 82,994 | — | — | 82,994 | |||||||||||||||||
Goodwill | — | — | 135,214 | — | — | 135,214 | |||||||||||||||||
Investment in consolidated subsidiaries | — | 3,323,713 | 984,559 | — | (4,308,272 | ) | — | ||||||||||||||||
Intercompany receivables | — | 111,964 | 1,800,539 | — | (1,912,503 | ) | — | ||||||||||||||||
Other assets | — | 6,507 | 13,571 | — | — | 20,078 | |||||||||||||||||
Total assets | $ | — | $ | 3,593,871 | $ | 3,450,414 | $ | 1,203,809 | $ | (6,220,775 | ) | $ | 2,027,319 | ||||||||||
Liabilities and Stockholders’ Equity (Deficit) | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable and accrued expenses | $ | — | $ | 8,653 | $ | 27,504 | $ | — | $ | — | $ | 36,157 | |||||||||||
Total current liabilities | — | 8,653 | 27,504 | — | — | 36,157 | |||||||||||||||||
Other liabilities | — | 53 | 1 | — | — | 54 | |||||||||||||||||
Intercompany payables | 111,964 | 1,800,539 | — | — | (1,912,503 | ) | — | ||||||||||||||||
Estimated losses on investment | 584,151 | — | — | — | (584,151 | ) | — | ||||||||||||||||
Total liabilities not subject to compromise | 696,115 | 1,809,245 | 27,505 | — | (2,496,654 | ) | 36,211 | ||||||||||||||||
Liabilities subject to compromise | — | 2,368,777 | 99,196 | 219,250 | — | 2,687,223 | |||||||||||||||||
Total liabilities | 696,115 | 4,178,022 | 126,701 | 219,250 | (2,496,654 | ) | 2,723,434 | ||||||||||||||||
Stockholders’ equity (deficit): | |||||||||||||||||||||||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 32,031,054 shares issued and 29,225,765 shares outstanding | 320 | — | — | — | — | 320 | |||||||||||||||||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding | 1 | — | — | — | — | 1 | |||||||||||||||||
Treasury stock, at cost, 2,806,187 shares | (229,310 | ) | — | — | — | — | (229,310 | ) | |||||||||||||||
Additional paid-in-capital | 1,626,428 | 279,811 | 4,215,794 | 2,203,511 | (6,699,116 | ) | 1,626,428 | ||||||||||||||||
Accumulated (deficit) equity | (2,093,554 | ) | (863,962 | ) | (892,081 | ) | (1,218,952 | ) | 2,974,995 | (2,093,554 | ) | ||||||||||||
Total stockholders’ (deficit) equity | (696,115 | ) | (584,151 | ) | 3,323,713 | 984,559 | (3,724,121 | ) | (696,115 | ) | |||||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | — | $ | 3,593,871 | $ | 3,450,414 | $ | 1,203,809 | $ | (6,220,775 | ) | $ | 2,027,319 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 131,259 | $ | — | $ | — | $ | — | $ | 131,259 | |||||||||||
Restricted cash | — | 8,025 | — | — | — | 8,025 | |||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $4,691 | — | — | — | 231,585 | — | 231,585 | |||||||||||||||||
Trade receivable | — | — | 4,985 | — | — | 4,985 | |||||||||||||||||
Asset held for sale | — | — | 30,150 | — | — | 30,150 | |||||||||||||||||
Prepaid expenses and other current assets | — | 17,321 | 16,602 | — | — | 33,923 | |||||||||||||||||
Total current assets | — | 156,605 | 51,737 | 231,585 | — | 439,927 | |||||||||||||||||
Property and equipment, net | — | 4,431 | 157,632 | — | — | 162,063 | |||||||||||||||||
Broadcast licenses | — | — | — | 1,540,183 | — | 1,540,183 | |||||||||||||||||
Other intangible assets, net | — | — | 116,499 | — | — | 116,499 | |||||||||||||||||
Goodwill | — | — | 135,214 | — | — | 135,214 | |||||||||||||||||
Investment in consolidated subsidiaries | — | 3,348,992 | 1,012,947 | — | (4,361,939 | ) | — | ||||||||||||||||
Intercompany receivables | — | 103,593 | 1,848,263 | — | (1,951,856 | ) | — | ||||||||||||||||
Other assets | — | 21,631 | 135,996 | 364 | (139,186 | ) | 18,805 | ||||||||||||||||
Total assets | $ | — | $ | 3,635,252 | $ | 3,458,288 | $ | 1,772,132 | $ | (6,452,981 | ) | $ | 2,412,691 | ||||||||||
Liabilities and Stockholders’ (Deficit) Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable and accrued expenses | $ | — | $ | 19,994 | $ | 76,247 | $ | — | $ | — | $ | 96,241 | |||||||||||
Trade payable | — | — | 4,550 | — | — | 4,550 | |||||||||||||||||
Total current liabilities | — | 19,994 | 80,797 | — | — | 100,791 | |||||||||||||||||
Term loan, net of debt issuance costs/discounts of $29,909 | — | 1,780,357 | — | — | — | 1,780,357 | |||||||||||||||||
7.75% senior notes, net of debt issuance costs of $6,200 | — | 603,800 | — | — | — | 603,800 | |||||||||||||||||
Other liabilities | — | 2,932 | 28,499 | — | — | 31,431 | |||||||||||||||||
Intercompany payables | 103,229 | 1,616,678 | — | 231,949 | (1,951,856 | ) | — | ||||||||||||||||
Accumulated losses in consolidated subsidiaries | 388,509 | — | — | — | (388,509 | ) | — | ||||||||||||||||
Deferred income taxes | — | — | — | 527,236 | (139,186 | ) | 388,050 | ||||||||||||||||
Total liabilities | 491,738 | 4,023,761 | 109,296 | 759,185 | (2,479,551 | ) | 2,904,429 | ||||||||||||||||
Stockholders’ equity (deficit): | |||||||||||||||||||||||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 32,031,054 shares issued and 29,225,765 shares outstanding | 320 | — | — | — | — | 320 | |||||||||||||||||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding | 1 | — | — | — | — | 1 | |||||||||||||||||
Treasury stock, at cost, 2,806,187 shares | (229,310 | ) | — | — | — | — | (229,310 | ) | |||||||||||||||
Additional paid-in-capital | 1,624,815 | 275,107 | 4,191,057 | 1,991,009 | (6,457,173 | ) | 1,624,815 | ||||||||||||||||
Accumulated (deficit) equity | (1,887,564 | ) | (663,616 | ) | (842,065 | ) | (978,062 | ) | 2,483,743 | (1,887,564 | ) | ||||||||||||
Total stockholders’ (deficit) equity | (491,738 | ) | (388,509 | ) | 3,348,992 | 1,012,947 | (3,973,430 | ) | (491,738 | ) | |||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | — | $ | 3,635,252 | $ | 3,458,288 | $ | 1,772,132 | $ | (6,452,981 | ) | $ | 2,412,691 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non-guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net (loss) income | $ | (206,565 | ) | $ | (200,346 | ) | $ | (50,016 | ) | $ | (240,890 | ) | $ | 491,252 | $ | (206,565 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 1,193 | 61,046 | — | — | 62,239 | |||||||||||||||||
Amortization of debt issuance costs/discounts | — | 9,394 | — | — | — | 9,394 | |||||||||||||||||
Provision for doubtful accounts | — | — | 5,807 | — | — | 5,807 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (2,499 | ) | — | — | (2,499 | ) | |||||||||||||||
Non cash reorganization | — | 25,921 | — | — | — | 25,921 | |||||||||||||||||
Impairment of intangible assets and goodwill | — | — | — | 335,909 | — | 335,909 | |||||||||||||||||
Deferred income taxes | (2,516 | ) | (60,808 | ) | (7,464 | ) | (97,438 | ) | — | (168,226 | ) | ||||||||||||
Stock-based compensation expense | — | 1,614 | — | — | — | 1,614 | |||||||||||||||||
Loss on early extinguishment of debt | — | 1,063 | — | — | — | 1,063 | |||||||||||||||||
Earnings (loss) from consolidated subsidiaries | 200,346 | 50,016 | 240,890 | — | (491,252 | ) | — | ||||||||||||||||
Changes in assets and liabilities | 4,355 | 291,517 | (282,757 | ) | 8,824 | — | 21,939 | ||||||||||||||||
Net cash (used in) provided by operating activities | (4,380 | ) | 119,564 | (34,993 | ) | 6,405 | — | 86,596 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Proceeds from sale of assets or stations | — | — | 6,090 | — | — | 6,090 | |||||||||||||||||
Restricted cash | — | (974 | ) | — | — | — | (974 | ) | |||||||||||||||
Capital expenditures | — | (11,166 | ) | (20,766 | ) | — | — | (31,932 | ) | ||||||||||||||
Net cash used in investing activities | — | (12,140 | ) | (14,676 | ) | — | — | (26,816 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Intercompany transactions, net | 4,380 | (54,049 | ) | 49,669 | — | — | — | ||||||||||||||||
Repayments of borrowings under term loan and revolving credit facilities | — | (81,652 | ) | — | — | — | (81,652 | ) | |||||||||||||||
Adequate protection payments on term loan | — | — | — | (6,405 | ) | — | (6,405 | ) | |||||||||||||||
Deferred financing costs | — | (91 | ) | — | — | — | (91 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 4,380 | (135,792 | ) | 49,669 | (6,405 | ) | — | (88,148 | ) | ||||||||||||||
Decrease in cash and cash equivalents | — | (28,368 | ) | — | — | — | (28,368 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 131,259 | — | — | — | 131,259 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 102,891 | $ | — | $ | — | $ | — | $ | 102,891 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net (loss) income | $ | (510,720 | ) | $ | (505,493 | ) | $ | (407,556 | ) | $ | (1,526 | ) | $ | 914,575 | $ | (510,720 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 1,530 | 85,737 | — | — | 87,267 | |||||||||||||||||
Amortization of debt issuance costs/discount | — | 9,771 | — | 190 | — | 9,961 | |||||||||||||||||
Provision for doubtful accounts | — | — | 1,103 | — | — | 1,103 | |||||||||||||||||
Gain on sale of assets or stations | — | — | (95,695 | ) | — | — | (95,695 | ) | |||||||||||||||
Impairment of intangible assets and goodwill | — | — | 604,965 | — | — | 604,965 | |||||||||||||||||
Deferred income taxes | (3,484 | ) | (65,292 | ) | 41,963 | (1,018 | ) | — | (27,831 | ) | |||||||||||||
Stock-based compensation expense | — | 2,948 | — | — | — | 2,948 | |||||||||||||||||
Gain on early extinguishment of debt | — | (8,017 | ) | — | — | — | (8,017 | ) | |||||||||||||||
Earnings (loss) from consolidated subsidiaries | 505,493 | 407,556 | 1,526 | — | (914,575 | ) | — | ||||||||||||||||
Changes in assets and liabilities | — | 361,825 | (392,415 | ) | 2,354 | — | (28,236 | ) | |||||||||||||||
Net cash (used in) provided by operating activities | (8,711 | ) | 204,828 | (160,372 | ) | — | — | 35,745 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Proceeds from sale of assets or stations | — | — | 106,935 | — | — | 106,935 | |||||||||||||||||
Restricted cash | — | (44 | ) | — | — | — | (44 | ) | |||||||||||||||
Capital expenditures | — | (2,276 | ) | (20,761 | ) | — | — | (23,037 | ) | ||||||||||||||
Net cash (used in) provided by investing activities | — | (2,320 | ) | 86,174 | — | — | 83,854 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Intercompany transactions, net | 8,708 | (82,906 | ) | 74,198 | — | — | — | ||||||||||||||||
Repayments of borrowings under revolving credit facilities | — | (20,000 | ) | — | — | — | (20,000 | ) | |||||||||||||||
Proceeds from exercise of warrants | 3 | — | — | — | — | 3 | |||||||||||||||||
Net cash provided by (used in) financing activities | 8,711 | (102,906 | ) | 74,198 | — | — | (19,997 | ) | |||||||||||||||
Increase in cash and cash equivalents | — | 99,602 | — | — | 99,602 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 31,657 | — | — | — | 31,657 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 131,259 | $ | — | $ | — | $ | — | $ | 131,259 |
Cumulus Media Inc. (Parent Guarantor) | Cumulus Media Holdings Inc. (Subsidiary Issuer) | Subsidiary Guarantors | Subsidiary Non- guarantors | Eliminations | Total Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net (loss) income | $ | (546,494 | ) | $ | (541,253 | ) | $ | (424,877 | ) | $ | (1,349 | ) | $ | 967,479 | $ | (546,494 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 1,525 | 100,580 | — | — | 102,105 | |||||||||||||||||
Amortization of debt issuance costs/discounts | — | 9,351 | — | 190 | — | 9,541 | |||||||||||||||||
Provision for doubtful accounts | — | — | 4,501 | — | — | 4,501 | |||||||||||||||||
Gain on sale of assets or stations | — | — | 2,856 | — | — | 2,856 | |||||||||||||||||
Impairment of intangible assets and goodwill | — | — | 565,584 | — | — | 565,584 | |||||||||||||||||
Impairment charges - equity interest in Pulser Media Inc. | — | — | 19,364 | — | — | 19,364 | |||||||||||||||||
Deferred income taxes | (3,494 | ) | (77,584 | ) | 33,716 | (900 | ) | — | (48,262 | ) | |||||||||||||
Stock-based compensation expense | — | 21,033 | — | — | — | 21,033 | |||||||||||||||||
Gain on early extinguishment of debt | — | (13,222 | ) | — | — | — | (13,222 | ) | |||||||||||||||
Earnings from consolidated subsidiaries | 541,253 | 424,877 | 1,349 | — | (967,479 | ) | — | ||||||||||||||||
Changes in assets and liabilities | — | 306,482 | (343,115 | ) | 2,059 | — | (34,574 | ) | |||||||||||||||
Net cash (used in) provided by operating activities | (8,735 | ) | 131,209 | (40,042 | ) | — | — | 82,432 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Restricted cash | — | 2,074 | — | — | — | 2,074 | |||||||||||||||||
Capital expenditures | — | (2,557 | ) | (16,679 | ) | — | — | (19,236 | ) | ||||||||||||||
Proceeds from exchange of assets or stations | — | — | 9,201 | — | — | 9,201 | |||||||||||||||||
Net cash used in investing activities | — | (483 | ) | (7,478 | ) | — | — | (7,961 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Intercompany transactions, net | 8,727 | (56,244 | ) | 47,517 | — | — | — | ||||||||||||||||
Repayment of borrowings under term loans and revolving credit facilities | — | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||||
Tax withholding payments on behalf of employees | — | (93 | ) | — | — | — | (93 | ) | |||||||||||||||
Proceeds from exercise of warrants | 8 | — | — | — | — | 8 | |||||||||||||||||
Net cash provided by (used in) financing activities | 8,735 | (106,337 | ) | 47,517 | — | — | (50,085 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 24,389 | (3 | ) | — | — | 24,386 | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 7,268 | 3 | — | — | 7,271 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 31,657 | $ | — | $ | — | $ | — | $ | 31,657 |
As of December 31, 2017 | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ | 102,891 | |
Restricted cash | 8,999 | ||
Accounts receivable, less allowance for doubtful accounts of $4,322 | 235,247 | ||
Trade receivable | 4,224 | ||
Prepaid expenses and other current assets | 42,259 | ||
Total current assets | 393,620 | ||
Property and equipment, net | 191,604 | ||
Other intangible assets, net | 82,994 | ||
Goodwill | 135,214 | ||
Investment in non-filing entities | 1,203,809 | ||
Other assets | 20,078 | ||
Total assets | $ | 2,027,319 | |
Liabilities and Stockholders’ Deficit | |||
Current liabilities: | |||
Accounts payable and accrued expenses | $ | 36,157 | |
Total current liabilities not subject to compromise | 36,157 | ||
Other liabilities | 54 | ||
Total liabilities not subject to compromise | 36,211 | ||
Liabilities subject to compromise | 2,687,223 | ||
Total liabilities | 2,723,434 | ||
Stockholders’ deficit: | |||
Class A common stock, par value $0.01 per share; 93,750,000 shares authorized; 32,031,952 shares issued, and 29,225,765 shares outstanding | 320 | ||
Class C common stock, par value $0.01 per share; 80,609 shares authorized, issued and outstanding | 1 | ||
Treasury stock, at cost, 2,806,187 shares | (229,310) | ||
Additional paid-in-capital | 1,626,428 | ||
Accumulated deficit | (2,093,554) | ||
Total stockholders’ deficit | (696,115 | ) | |
Total liabilities and stockholders’ deficit | $ | 2,027,319 |
Twelve Months Ended December 31, 2017 | |||
Net revenue | $ | 1,135,662 | |
Operating expenses: | |||
Content costs | 402,978 | ||
Selling, general & administrative expenses | 475,116 | ||
Depreciation and amortization | 62,239 | ||
LMA fees | 10,884 | ||
Corporate expenses (including stock-based compensation expense of $1,614) | 59,062 | ||
Gain on sale of assets or stations | (2,499) | ||
Total operating expenses | 1,007,780 | ||
Operating income | 127,882 | ||
Non-operating expense: | |||
Reorganization items, net | (31,603) | ||
Interest expense | (126,816) | ||
Loss on early extinguishment of debt | (1,063) | ||
Other expense, net | (363) | ||
Total non-operating expense, net | (159,845 | ) | |
Loss before income taxes | (31,963) | ||
Income tax benefit | 66,288 | ||
Equity in earnings of non-filing entities | (240,890) | ||
Net income | $ | (206,565 | ) |
Twelve Months Ended December 31, 2017 | |||
Cash flows from operating activities: | |||
Net loss | $ | (206,565 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 62,239 | ||
Amortization of debt issuance costs/discounts | 9,394 | ||
Provision for doubtful accounts | 5,807 | ||
Gain on sale of assets or stations | (2,499) | ||
Non-cash reorganization items | 25,921 | ||
Deferred income taxes | (70,788) | ||
Stock-based compensation expense | 1,614 | ||
Loss on early extinguishment of debt | 1,063 | ||
Equity in earnings of non-filing entities | 240,890 | ||
Changes in assets and liabilities (excluding acquisitions and dispositions): | 19,520 | ||
Net cash provided by operating activities | 86,596 | ||
Cash flows from investing activities: | |||
Proceeds from sale of assets or stations | 6,090 | ||
Restricted cash | (974) | ||
Capital expenditures | (31,932) | ||
Net cash used in investing activities | (26,816 | ) | |
Cash flows from financing activities: | |||
Repayment of borrowings under term loans and revolving credit facilities | (81,652) | ||
Adequate protection payments on term loan | (6,405) | ||
Deferred financing costs | (91) | ||
Net cash used in financing activities | (88,148 | ) | |
Decrease in cash and cash equivalents | (28,368) | ||
Cash and cash equivalents at beginning of period | 131,259 | ||
Cash and cash equivalents at end of period | $ | 102,891 |
Year Ended December 31, 2017 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 786,963 | $ | 346,165 | $ | 2,534 | $ | 1,135,662 |
Year Ended December 31, 2016 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 802,396 | $ | 336,610 | $ | 2,394 | $ | 1,141,400 |
Year Ended December 31, 2015 | ||||||||||||||||
Radio Station Group | Westwood One | Corporate and Other | Consolidated | |||||||||||||
Net revenue | $ | 796,383 | $ | 368,968 | $ | 3,328 | $ | 1,168,679 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Adjusted EBITDA by segment | |||||||||||
Radio Station Group | $ | 204,588 | $ | 218,192 | $ | 241,673 | |||||
Westwood One | 51,034 | 22,984 | $ | 52,958 | |||||||
Segment Adjusted EBITDA | 255,622 | 241,176 | 294,631 | ||||||||
Adjustments | |||||||||||
Corporate and other | (37,871 | ) | (35,309 | ) | $ | (35,486 | ) | ||||
Income tax benefit | 163,726 | 26,154 | 45,840 | ||||||||
Non-operating expense, including net interest expense | (127,179 | ) | (136,102 | ) | (127,041 | ) | |||||
LMA fees | (10,884 | ) | (12,824 | ) | (10,129 | ) | |||||
Depreciation and amortization | (62,239 | ) | (87,267 | ) | (102,105 | ) | |||||
Stock-based compensation expense | (1,614 | ) | (2,948 | ) | (21,035 | ) | |||||
Gain (loss) on sale of assets or stations | 2,499 | 95,695 | (2,856 | ) | |||||||
Reorganization items, net | (31,603 | ) | — | — | |||||||
Impairment of intangible assets | (335,909 | ) | (604,965 | ) | (565,580 | ) | |||||
Impairment charges - equity interest in Pulser Media, Inc. | — | — | (19,364 | ) | |||||||
Acquisition-related and restructuring costs | (19,492 | ) | (1,817 | ) | (16,641 | ) | |||||
Franchise and state taxes | (558 | ) | (530 | ) | 50 | ||||||
(Loss) gain on early extinguishment of debt | (1,063 | ) | 8,017 | 13,222 | |||||||
Consolidated net loss | $ | (206,565 | ) | $ | (510,720 | ) | $ | (546,494 | ) |
Fiscal Year | Balance at Beginning of Year | Charged to Costs and Expenses | Deductions | Balance at End of Year | ||||||||||||
Allowance for doubtful accounts | ||||||||||||||||
2017 | $ | 4,691 | $ | 5,808 | $ | (6,177 | ) | $ | 4,322 | |||||||
2016 | $ | 4,923 | $ | 1,103 | $ | (1,335 | ) | $ | 4,691 | |||||||
2015 | $ | 6,004 | $ | 4,501 | $ | (5,582 | ) | $ | 4,923 | |||||||
Valuation allowance on deferred taxes | ||||||||||||||||
2017 | $ | 17,205 | $ | 58,255 | $ | — | $ | 75,460 | ||||||||
2016 | $ | 17,173 | $ | 32 | $ | — | $ | 17,205 | ||||||||
2015 | $ | 18,991 | $ | 517 | $ | (2,335 | ) | $ | 17,173 |
A) | two and one-half (2.5), if such termination occurs during the Initial Term; or |
B) | two (2), if such termination occurs during any Renewal Term; |
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense | $ | 116,675 | $ | 127,980 | $ | 130,559 | $ | 134,680 | $ | 166,110 | |||||||||
Amortization of debt discount and debt interest costs | 9,394 | 9,961 | 9,541 | 9,493 | 9,919 | ||||||||||||||
Total fixed charges | $ | 126,069 | $ | 137,941 | $ | 140,100 | $ | 144,173 | $ | 176,029 | |||||||||
Earnings available for fixed charges: | |||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for income or loss from equity investees | $ | (370,291 | ) | $ | (536,874 | ) | $ | (592,334 | ) | $ | 22,023 | $ | (24,851 | ) | |||||
Add: fixed charges | 126,069 | 137,941 | 140,100 | 144,173 | 176,029 | ||||||||||||||
Less: preferred stock dividends | — | — | — | — | (10,676 | ) | |||||||||||||
Total earnings available for fixed charges | $ | (244,222 | ) | $ | (398,933 | ) | $ | (452,234 | ) | $ | 166,196 | $ | 140,502 | ||||||
Ratio of earnings to fixed charges | * | * | * | 1.15 | * |
2-L Corporation | Louisiana |
Atlanta Radio, LLC | Delaware |
Broadcast Software International | Nevada |
Catalyst Media, Inc. | Delaware |
Chicago FM Radio Assets, LLC | Delaware |
Chicago Radio Assets, LLC | Delaware |
CMI Receivables Funding LLC | Delaware |
CMP Houston-KC, LLC | Delaware |
CMP KC Corp. | Delaware |
CMP Susquehanna Corp. | Delaware |
CMP Susquehanna Radio Holdings Corp. | Delaware |
Consolidated IP Company LLC | Delaware |
Cumulus Broadcasting LLC | Nevada |
Cumulus Intermediate Holdings Inc. | Delaware |
Cumulus Licensing LLC | Nevada |
Cumulus Media Holdings Inc | Delaware |
Cumulus Network Holdings Inc. | Delaware |
Cumulus Radio Corporation | Nevada |
Deer Point Tower Venture, LLC | Delaware |
Detroit Radio, LLC | Delaware |
Dial Communications Global Media, LLC | Delaware |
Incentrev-Radio Half Off, LLC | Delaware |
222 JV Clear Channel | Delaware |
KLIF Broadcasting, Inc. | Nevada |
KLIF Lico, Inc. | Nevada |
KLOS-FM Radio Assets, LLC | Delaware |
KPLX Lico, Inc. | Nevada |
LA Radio, LLC | Delaware |
Minneapolis Radio Assets, LLC | Delaware |
NASH Country, LLC | Delaware |
Nashville Radio Tower Joint Venture | Delaware |
NY Radio Assets, LLC | Delaware |
POP Radio, LP | Delaware |
Radar/Cumulus Entertainment LLC | Delaware |
Radio Assets, LLC | Delaware |
Radio License Holdings LLC | Delaware |
Radio License Holding CBC, LLC | Delaware |
Radio License Holding SRC LLC | Delaware |
Radio Metroplex, Inc. | Nevada |
Radio Networks, LLC | Delaware |
San Francisco Radio Assets, LLC | Delaware |
Shoreview FM Group | Delaware |
Susquehanna Media Corp. | Delaware |
Susquehanna Pfaltzgraff Co. | Delaware |
Susquehanna Radio Corp. | Pennsylvania |
Sweetjack, LLC | Delaware |
WBAP-KSCS Assets, LLC | Delaware |
Westwood One, Inc. | Delaware |
Westwood One Radio Networks, Inc | California |
WPLJ Radio, LLC | Delaware |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 28, 2018 | By: | /s/ Mary G. Berner | |
Mary G. Berner | |||
Title: President and Chief Executive Officer |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 28, 2018 | By: | /s/ John Abbot | |
John Abbot | |||
Executive Vice President, Treasurer and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report. |
/s/ Mary G. Berner | |||
Name: | Mary G. Berner | ||
Title: | President and Chief Executive Officer | ||
/s/ John Abbot | |||
Name: | John Abbot | ||
Title: | Executive Vice President, Treasurer and Chief Financial Officer |
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Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Mar. 21, 2018 |
Jun. 30, 2017 |
|
Document Information [Line Items] | |||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2017 | ||
Document fiscal year focus | 2017 | ||
Document fiscal period focus | FY | ||
Trading symbol | CMLS | ||
Entity registrant name | CUMULUS MEDIA INC | ||
Entity central index key | 0001058623 | ||
Current fiscal year end date | --12-31 | ||
Entity well-known seasoned issuer | No | ||
Entity current reporting status | Yes | ||
Entity voluntary filers | No | ||
Entity filer category | Smaller Reporting Company | ||
Entity public float | $ 5.9 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,225,765 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 80,609 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
May 13, 2011 |
---|---|---|---|
Allowance for doubtful accounts | $ 4,322 | $ 4,691 | |
Debt issuance cost (premium) | $ 29,909 | ||
Treasury stock, shares | 2,806,187 | 2,806,187 | |
Class A Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 93,750,000 | 93,750,000 | |
Common stock, shares issued | 32,031,954 | 32,031,954 | |
Common stock, shares outstanding | 29,225,765 | 29,225,765 | |
Class C Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 80,609 | 80,609 | |
Common stock, shares issued | 80,609 | 80,609 | |
Common stock, shares outstanding | 80,609 | 80,609 | |
7.75% Senior Notes | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Debt issuance costs | $ 0 | $ 6,200 |
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Statement [Abstract] | |||
Stock-based compensation expense | $ 1,614 | $ 2,948 | $ 21,033 |
Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) |
Total |
Common Stock
Class A Common Stock
|
Common Stock
Class C Common Stock
|
Treasury Stock |
Additional Paid-In Capital |
Accumulated Deficit |
---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2014 | 31,874,741 | 80,609 | 2,827,444 | |||
Beginning balance at Dec. 31, 2014 | $ 541,580,000 | $ 319,000 | $ 1,000 | $ (231,588,000) | $ 1,603,198,000 | $ (830,350,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (546,494,000) | (546,494,000) | ||||
Conversion of equity upon exercise of warrants (in shares) | 113,121 | 6,288 | ||||
Conversion of equity upon exercise of warrants | 6,000 | $ 1,000 | $ (115,000) | 120,000 | ||
Shares returned in lieu of tax payments | (93,000) | $ (93,000) | ||||
Restricted shares issued from treasury (in shares) | (27,989) | |||||
Restricted shares issued from treasury | 0 | $ 2,486,000 | (2,486,000) | |||
Stock conversion | 21,033,000 | 21,033,000 | ||||
Ending balance (in shares) at Dec. 31, 2015 | 31,987,862 | 80,609 | 2,805,743 | |||
Ending balance at Dec. 31, 2015 | 16,032,000 | $ 320,000 | $ 1,000 | $ (229,310,000) | 1,621,865,000 | (1,376,844,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (510,720,000) | (510,720,000) | ||||
Conversion of equity upon exercise of warrants (in shares) | 43,192 | |||||
Conversion of equity upon exercise of warrants | 2,000 | $ 0 | 2,000 | |||
Stock based compensation expense | 2,948,000 | 2,948,000 | ||||
Other | 0 | $ 444 | ||||
Ending balance (in shares) at Dec. 31, 2016 | 32,031,054 | 80,609 | 2,806,187 | |||
Ending balance at Dec. 31, 2016 | (491,738,000) | $ 320,000 | $ 1,000 | $ (229,310,000) | 1,624,815,000 | (1,887,564,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (206,565,000) | (206,565,000) | ||||
Stock based compensation expense | 1,614,000 | 1,614,000 | ||||
Other | 574,000 | (1,000) | 575,000 | |||
Ending balance (in shares) at Dec. 31, 2017 | 32,031,054 | 80,609 | 2,806,187 | |||
Ending balance at Dec. 31, 2017 | $ (696,115,000) | $ 320,000 | $ 1,000 | $ (229,310,000) | $ 1,626,428,000 | $ (2,093,554,000) |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Current Bankruptcy Proceedings On November 29, 2017 (the "Petition Date"), the Company and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions for relief (the “Bankruptcy Petitions”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”. The Debtors' chapter 11 cases are being jointly administered under the caption In re Cumulus Media Inc., et al, Case No. 17-13381. Immediately prior to the commencement of the case the Debtors entered into a Restructuring Support Agreement (the “Restructuring Support Agreement”) with certain creditors (the “Consenting Creditors”) under that certain Amended and Restated Credit Agreement, dated as of December 23, 2013 (the “Credit Agreement”), by and among the Company, Cumulus Media Holdings Inc., as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto from time to time, and Crestview Radio Investors, LLC and certain of its affiliates (the “Consenting Equityholders”). The Restructuring Support Agreement contemplates the implementation of a financial restructuring of the Debtors (as described below) through a conversion of more than $1.0 billion of the Company’s funded debt into equity (collectively, the “Restructuring”). The Restructuring will be effectuated by a joint plan of reorganization (the “Plan”) under chapter 11 of the Bankruptcy Code if confirmed by the Bankruptcy Court. On December 1, 2017, the Bankruptcy Court approved certain motions and applications the Debtors filed on the Petition Date (the “First Day Motions”), certain of which were approved on an interim basis. On December 21, 2017, the Bankruptcy Court approved all of the Company’s First Day Motions on a final basis. Pursuant to the First Day Motions, and subject to certain terms and dollar limits included therein, the Company was authorized to continue to use its unrestricted cash on hand, as well as all cash generated from daily operations, which is being used to continue the Company’s operations without interruption during the course of its restructuring. Also pursuant to the First Day Motions, the Company received Bankruptcy Court authorization to, among other things and subject to the terms and conditions set forth in the applicable orders, pay certain pre-petition employee wages, salaries, health benefits and other employee obligations during its restructuring, pay certain claims relating to on-air talent and taxes, continue its cash management programs and insurance policies, as well as continue to honor its current customer programs. The Company is authorized under the Bankruptcy Code to pay post-petition expenses incurred in the ordinary course of business without seeking Bankruptcy Court approval. Until a plan of reorganization is approved and effective, the Debtors will continue to manage their properties and operate their businesses as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. On December 9, 2017, the Debtors filed the Plan with the Bankruptcy Court and a related disclosure statement (the "Disclosure Statement") pursuant to chapter 11 of the Bankruptcy Code. On January 18, 2018, the Debtors filed with the Bankruptcy Court a first modified joint plan of reorganization and the related first modified disclosure statement for the Plan pursuant to chapter 11 of the Bankruptcy Code. The Plan and Disclosure Statement were further modified on January 31, 2018, February 2, 2018, February 12, 2018, and March 16, 2018. On February 2, 2018, the Bankruptcy Court entered an order approving the Disclosure Statement and authorizing the solicitation of votes on the Plan. Pursuant to the Plan, holders of claims with respect to the Term Loans (“Term Loan Claims”) would receive their pro rata share of approximately $1.3 billion in principal amount of new first lien term loans maturing in 2022 (the “New First Lien Debt”) and 83.5% of the issued and outstanding amount of common stock (the “Reorganized Common Equity”) to be issued by the reorganized Company (“Reorganized Cumulus”), subject to dilution by any Reorganized Common Equity issued pursuant to a post-emergence equity management incentive compensation plan (the “MIP”). Holders of unsecured claims against the Company, including claims arising from the Company’s 7.75% Senior Notes due 2019 (the “Notes”), would receive, in the aggregate, 16.5% of the Reorganized Common Equity, subject to dilution by the MIP. The New First Lien Debt would accrue interest at the London Inter-bank Offered Rate ("LIBOR") plus 4.50% per annum, subject to a LIBOR floor of 1.00% or, at Reorganized Cumulus’s option, an alternate base rate plus 3.50% per annum, subject to an alternate base rate floor of 2.00%. Reorganized Cumulus would be permitted to enter into a revolving credit facility or receivables facility providing commitments of up to $50 million. The New First Lien Debt would amortize in equal quarterly installments in an aggregate annual amount equal to 1% of the original principal amount of the New First Lien Debt with the balance payable on the maturity date. Reorganized Cumulus would be able to voluntarily prepay the New First Lien Debt in whole or in part without premium or penalty, except that any prepayment during the period of six months following the issuance of the New First Lien Debt would require a premium equal to 1% of the prepaid principal amount. Certain mandatory prepayments on the New First Lien Debt would be required upon the occurrence of specified events as set forth in the Credit Agreement, including upon the sale of certain assets and from excess cash flow as defined. The New First Lien Debt would not have any financial maintenance covenants. The other terms and conditions of the New First Lien Debt would generally be similar to those set forth in the Credit Agreement, except as set forth in the term sheet attached to the Restructuring Support Agreement (the "Term Sheet"). The New First Lien Debt would be secured by first priority security interests in substantially all the assets of Reorganized Cumulus and the Guarantors (as defined below) in a manner substantially consistent with the Credit Agreement, subject to the terms of the term sheet. In addition, the direct parent of Reorganized Cumulus (the “Parent”) and all present and future wholly-owned subsidiaries of the Parent, subject to exceptions that are substantially consistent with those set forth in the Credit Agreement, would guarantee the New First Lien Debt (the "Guarantors"). The Plan contemplates that the Board of Directors of Reorganized Cumulus would consist of the President and Chief Executive Officer of the Company and six directors chosen by the Consenting Creditors. Even if the requisite acceptances of the Plan are received, the Bankruptcy Court is not obligated to confirm the Plan as proposed. The Company has applied Accounting Standards Codification (“ASC”) 852 “Reorganizations” in preparing the consolidated financial statements. ASC 852 requires the financial statements, for periods subsequent to the Bankruptcy Petitions filings, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain revenues and expenses incurred during the bankruptcy proceedings, including unamortized deferred financing costs and discounts associated with debt classified as liabilities subject to compromise, are recorded as reorganization items. In addition, pre-petition obligations that may be impacted by the chapter 11 process have been classified on the Consolidated Balance Sheet at December 31, 2017 as liabilities subject to compromise. These liabilities are reported at the amounts the Company anticipates will be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. See below for more information regarding reorganization items. Accounting principles generally accepted in the United States of America requires certain additional reporting for financial statements prepared between the Petition Date and the date that the Company emerges from bankruptcy, including:
Debtor-In-Possession. The Debtors are currently operating as debtors in possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has approved motions filed by the Debtors that were designed primarily to mitigate the impact of the chapter 11 proceedings on the Company’s operations, customers and employees. As a result, the Company is able to conduct normal business activities and pay all associated obligations for the period following its bankruptcy filing in the ordinary course of business and is authorized to pay and has paid certain pre-petition obligations, including, among other things, for employee wages and benefits, goods and services provided by certain on-air talent. During the chapter 11 cases, all transactions outside the ordinary course of business require the prior approval of the Bankruptcy Court. Automatic Stay. Subject to certain specific exceptions under the Bankruptcy Code, the Bankruptcy Petitions automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities are subject to settlement under the Bankruptcy Code. (See Note 18 “Condensed Combined Debtor-In-Possession Financial Information”). Executory Contracts. Subject to certain exceptions, under the Bankruptcy Code, the Debtors may assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors from performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Debtors in this document, including where applicable a quantification of the Company’s obligations under any such executory contract or unexpired lease of the Debtors, is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. Potential Claims. The Debtors have filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. Certain holders of pre-petition claims that are not governmental units were required to file proofs of claim by the deadline for general claims of March 7, 2018 (the “Bar Date”). The Debtors' have received approximately 1,300 proofs of claim, primarily representing general unsecured claims, for an amount of approximately $2.6 billion. These claims will be reconciled to amounts recorded in liabilities subject to compromise in the Consolidated Balance Sheet. Differences in amounts recorded and claims filed by creditors will be investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. The Company may ask the Bankruptcy Court to disallow claims that the Company believes are duplicative, have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. In addition, as a result of this process, the Company may identify additional liabilities that will need to be recorded or reclassified to liabilities subject to compromise. In light of the substantial number of claims filed, and expected to be filed, the claims resolution process may take considerable time to complete and likely will continue after the Debtors emerge from bankruptcy. Reorganization Items. The Debtors, have incurred and will continue to incur significant costs associated with the reorganization, primarily legal and professional fees. The amount of these costs, which since the Petition Date, are being expensed as incurred, are expected to significantly affect the Company’s results of operations. In accordance with applicable guidance, costs associated with the bankruptcy proceedings have been recorded as reorganization items within the Company's accompanying Consolidated Statements of Operations for the year ended December 31, 2017. (See Note 9, "Reorganization Items"). Financial Statement Classification of Liabilities Subject to Compromise. The accompanying Consolidated Balance Sheet as of December 31, 2017, includes amounts classified as liabilities subject to compromise, which represent liabilities the Company anticipates will be allowed as claims in the chapter 11 cases. These amounts represent the Debtors’ current estimate of known or potential obligations to be resolved in connection with the chapter 11 cases, and may differ from actual future settlement amounts paid. Differences between liabilities estimated and claims filed, or to be filed, will be investigated and resolved in connection with the claims resolution process. The Company will continue to evaluate these liabilities throughout the chapter 11 process and adjust amounts as necessary. Such adjustments may be material. (See Note 8, "Liabilities Subject to Compromise"). Reverse Stock Split On October 12, 2016, the Company effected a one-for-eight (1:8) reverse stock split (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every eight shares of each class of the Company's outstanding common stock were combined into one share of the same class of common stock and the authorized shares of each class of the Company's common stock were reduced by the same ratio. No fractional shares were issued in connection with the Reverse Stock Split. The number and exercise price of the Company's outstanding stock options and warrants were adjusted proportionally, as appropriate. The par value of the Company's common stock was not adjusted as a result of the Reverse Stock Split. All authorized, issued and outstanding stock and per share amounts contained within the accompanying consolidated financial statements and these footnotes have been adjusted to reflect this Reverse Stock Split for all periods presented. Out of Period Adjustments In connection with the preparation of certain prior period consolidated financial statements, the Company recorded the below out of period adjustments:
Reportable Segments The Company operates in two reportable segments, for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker, the Radio Station Group and Westwood One. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including significant estimates related to revenue recognition, bad debts, intangible assets, income taxes, stock-based compensation, contingencies, litigation, valuation assumptions for impairment analysis, certain expense accruals and, if applicable, purchase price allocation. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, and which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates. Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and certain items that are excluded from net income (loss) and recorded as a separate component of stockholders' equity (deficit). During the years ended December 31, 2017 and 2016, the Company had no items of other comprehensive income (loss) and, therefore, comprehensive income (loss) does not differ from reported net income (loss). Liquidity and Going Concern Considerations In accordance with the requirements of Accounting Standards Update (“ASU”), 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40), or Accounting Standards Codification ("ASC") 205-40, the Company has the responsibility to evaluate at each reporting period, including interim periods, whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations. In its evaluation for this report, management considered the Company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows and the Company’s conditional and unconditional obligations due for 12 months following the date of issuance of this Annual Report on Form 10-K. As of December 31, 2017, the Company had $102.9 million of unrestricted cash and cash equivalents. The Company has generated positive cash flows from operating activities of $86.6 million and $35.7 million for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017, the Company had a $1.722 billion Term Loan outstanding, as described in Note 6, "Long-Term Debt", under its Credit Agreement (defined below) and $610.0 million of 7.75% Senior Notes (defined below) outstanding. Amounts outstanding under the Term Loan are scheduled to mature on December 23, 2020 and the 7.75% Senior Notes mature on May 1, 2019. Notwithstanding these maturity dates, and as disclosed further in Note 6, the Credit Agreement includes a springing maturity provision that provides that if on January 30, 2019 the aggregate principal amount of 7.75% Senior Notes outstanding exceeds $200.0 million, the maturity date of the Term Loan will be accelerated to January 30, 2019. If the Company's plan of reorganization is not approved prior thereto, or the Company is unable to take other steps to create additional liquidity or otherwise avoid the occurrence of the springing maturity, forecasted cash flows would not be sufficient for the Company to meet its obligations as of January 30, 2019. On October 30, 2017, the Restructuring Committee of the Board of Directors authorized the Company to forgo the November 1, 2017, scheduled interest payment of $23.6 million on the Company's 7.75% Senior Notes. The Company will continue to forgo interest payments, on the Company's 7.75% Senior Notes, while under bankruptcy protection. Based on the Company's substantial level of indebtedness and, as described above, the Company's filing for relief under chapter 11 of the Bankruptcy Code as well as the uncertainty surrounding such filings, the Company determined that there is substantial doubt as to the Company’s ability to continue as a going concern for a period of 12 months following the date of issuance of this Form 10-K. Notwithstanding the aforementioned, the accompanying consolidated financial statements of the Company have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the ability to continue as a going concern. The consolidated financial statements do not reflect or include any future consequences related to chapter 11 relief or emergence from chapter 11 relief. Cash and Cash Equivalents The Company considered all highly liquid investments with original maturities of three months or less to be cash equivalents. Accounts Receivable, Allowance for Doubtful Accounts and Concentration of Credit Risk Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determined the allowance based on several factors, including the length of time receivables are past due, trends and current economic factors. All balances are reviewed and evaluated quarterly on a consolidated basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. In the opinion of management, credit risk with respect to accounts receivable is limited as a result of the large number of customers and the geographic diversification of the Company’s customer base. The Company performs credit evaluations of its customers as needed and believes that adequate allowances for any uncollectible accounts receivable are maintained. Assets Held for Sale During the year ended December 31, 2015, the Company entered into an agreement to sell certain land in the Company's Washington, DC market to a third party. The closing of the transaction is subject to various conditions and approvals, which remain pending. The identified asset was classified as held for sale in the accompanying Consolidated Balance Sheet at December 31, 2016. The estimated fair value of the land to be disposed of is in excess of its carrying value. Under the Bankruptcy Code, the final disposition of assets via a sales agreement cannot occur without Bankruptcy Court approval. As a result, as of December 31, 2017, the asset no longer met the definition of held for sale under Accounting Standards Codification ("ASC") Topic 360, Property and equipment and as of December 31, 2017, the asset was reclassified on the Consolidated Balance Sheet as Property and Equipment. Dispositions On August 30, 2016, the Company completed the sale of certain land and buildings in Los Angeles for $110.6 million in cash. In conjunction with this sale, the Company recorded a net gain of $94.0 million, which is included in (gain) loss on sale of assets or stations in the accompanying Consolidated Statement of Operations for the year-ended December 31, 2016. Insurance Recoveries The Company recorded $12.4 million in other income (expense), net in the Consolidated Statement of Operations for the year ended December 31, 2015. This was primarily related to the receipt of $14.6 million of insurance proceeds from a business interruption claim arising from Hurricane Katrina in 2005. Property and Equipment Property and equipment are stated at cost. Property and equipment acquired in business combinations accounted for under the purchase method of accounting are recorded at their estimated fair values on the date of acquisition. Equipment held under capital leases is stated at the present value of minimum future lease payments. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets. Equipment held under capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining term of the lease. Depreciation of construction in progress is not recorded until the assets are placed into service. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Intangible Assets and Goodwill The Company’s intangible assets are comprised of broadcast licenses, certain other intangible assets and goodwill. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed in a business combination. Intangible assets and goodwill acquired in a business combination and determined to have an indefinite useful life, which include the Company’s broadcast licenses, are not amortized, but instead tested for impairment at least annually, or if a triggering event occurs. Intangible assets with definite useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In determining that the Company’s broadcast licenses qualified as indefinite lived intangibles, management considered a variety of factors including the Federal Communications Commission’s (“FCC”) historical record of renewing broadcast licenses, the cost to the Company of renewing such licenses, the relative stability and predictability of the radio industry and the relatively low level of capital investment required to maintain the physical plant of a radio station. The Company's evaluation of the recoverability of its indefinite-lived assets, which include FCC licenses and goodwill, is based on certain judgments and estimates. Future events may impact these judgments and estimates. If events or changes in circumstances were to indicate that an asset’s carrying value is not recoverable, a write-down of the asset would be recorded through a charge to operations. Investments The Company follows Accounting Standards Codification (“ASC”) Topic 325-20, Cost Method Investments (“ASC 325-20”) to account for its ownership interest in noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. During the year ended December 31, 2015, the Company recognized an impairment charge of $19.4 million related to the decline in the fair value of a cost-method investment. As of December 31, 2017 and 2016, there were no cost-method investments in the Consolidated Balance Sheets. Debt Issuance Costs The costs related to the issuance of debt are capitalized and amortized to interest expense over the life of the related debt using the effective interest method. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03. The amendments in ASU 2015-03 require that debt issuance costs be presented in the Consolidated Balance Sheet as a direct deduction from the carrying amount of long-term debt, consistent with debt discounts or premiums. However, as a result of the Company’s chapter 11 cases, the Company expensed the entire balance of $25.9 million of deferred financing costs and debt discount during the fourth quarter of 2017 to reorganization items, net, in the Consolidated Statement of Operations for the year ended December 31, 2017. Revenue Recognition Revenue is derived primarily from the sale of commercial airtime to local and national advertisers. Revenue is recognized as commercials are broadcast. Revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees by the advertising agencies, usually at a rate of 15.0%, which is the industry standard. In those instances in which the Company functions as the principal in the transaction, the revenue and associated operating costs are presented on a gross basis. In those instances where the Company functions as an agent or sales representative, the effective commission is presented as revenue with no corresponding operating expenses. Advertising Costs Advertising costs are expensed as incurred. For the years ended December 31, 2017, 2016, and 2015, the costs incurred were $5.1 million, $4.9 million and $3.9 million, respectively. Local Marketing Agreements A number of radio stations, including certain of our stations, have entered into LMAs. In a typical LMA, the licensee of a station makes available, for a fee and reimbursement of its expenses, airtime on its station to a party which supplies programming to be broadcast during that airtime, and collects revenues from advertising aired during such programming. LMAs are subject to compliance with the antitrust laws and the Communications Laws, including the requirement that the licensee must maintain independent control over the station and, in particular, its personnel, programming, and finances. As of December 31, 2017 and 2016, the Company operated four and five radio stations under an LMA, respectively. The stations operated under an LMA contributed $23.9 million, $23.2 million, and $24.5 million in 2017, 2016, and 2015, respectively, to the consolidated net revenue of the Company. Stock-based Compensation Expense Stock-based compensation expense recognized under ASC Topic 718, Compensation — Share-Based Payment (“ASC 718”), for the years ended December 31, 2017, 2016 and 2015, was $1.6 million, $2.9 million, and $21.0 million, respectively. Upon adopting ASC 718 for awards with service conditions, an election was made to recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award. For stock options with service conditions only, the Company utilizes the Black-Scholes option pricing model to estimate the fair value of options issued. The fair value of stock options is determined by the Company’s stock price, historical stock price volatility over the expected term of the awards, risk-free interest rates and expected dividends. If other assumptions are used, the results could differ. For restricted stock awards with service conditions only, the Company utilizes the intrinsic value method. For restricted stock awards with performance conditions, the Company evaluates the probability of vesting of the awards in each reporting period and adjusts compensation cost based on this assessment. Trade Transactions The Company provides commercial airtime in exchange for goods and services used principally for promotional, sales, programming and other business activities. An asset and liability is recorded at the fair value of the goods or services received. Trade revenue is recorded and the liability is relieved when commercials are broadcast and trade expense is recorded and the asset relieved when goods or services are consumed. Trade valuation is based upon management’s estimate of the fair value of the products, supplies and services received. For the years ended December 31, 2017, 2016, and 2015, amounts reflected under trade transactions were: (1) trade revenues of $40.1 million, $37.7 million and $39.2 million, respectively; and (2) trade expenses of $38.6 million, $36.2 million and $40.4 million, respectively. Income Taxes The Company uses the liability method of accounting for deferred income taxes. Except for goodwill, deferred income taxes are recognized for all temporary differences between the tax and financial reporting bases of our assets and liabilities based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The Act, among other changes, reduces the US federal corporate tax rate from 35% to 21% for tax years after 2017. At December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the Act; however, in certain cases, as described more fully in Note 12 “Income Taxes”, it has made a reasonable estimate of the effects on its existing deferred tax balances. A valuation allowance is recorded against a deferred tax asset to measure its net realizable value when it is not more likely than not that the benefits of its recovery will be recognized. The Company continually reviews the adequacy of our valuation allowance on our deferred tax assets and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740, Income Taxes ("ASC 740"). Any adjustment to the deferred tax asset valuation allowance is recorded in the Consolidated Statement of Operations of the period that the adjustment is determined to be required. See Note 12, “Income Taxes” for further discussion. Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding. The Company allocates undistributed net income (loss) from continuing operations between each class of common stock on an equal basis after any allocations for preferred stock dividends in accordance with the terms of the Company’s third amended and restated certificate of incorporation, as amended (the “Third Amended and Restated Charter”). Non-vested restricted shares of Class A common stock and Company Warrants (defined below) are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company recorded net income. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming the issuance of common stock for all potentially dilutive equivalent shares, which includes stock options and certain other outstanding warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income is allocated to common stock and participating securities to the extent that each security may share in earnings, as if all of the earnings for the period had been distributed. Earnings are allocated to each participating security and common share equally, after deducting dividends declared or accreted on preferred stock. Fair Values of Financial Instruments The carrying values of cash equivalents, restricted cash, accounts receivables, accounts payable, trade payables and receivables and accrued expenses approximate fair value because of the short term to maturity of these instruments (See Note 7, "Fair Value Measurements"). Accounting for National Advertising Agency Contract The Company has engaged Katz Media Group, Inc. (“Katz”) as its national advertising sales agent. The Company’s contract with Katz has several economic elements that principally reduce the overall expected commission rate below the stated base rate. The Company estimates the overall expected commission rate over the entire contract period and applies that rate to commissionable revenue throughout the contract period with the goal of estimating and recording a stable commission rate over the life of the contract. The potential commission adjustments are estimated and combined in the Consolidated Balance Sheets with the contractual termination liability. That liability is accreted to commission expense to effectuate the stable commission rate over the term of the contract. Over the term of the contract with Katz, management updates its assessment of the effective commission expense attributable to national sales in an effort to record a consistent commission rate in each period. The Company’s accounting for and calculation of commission expense to be realized over the life of the Katz contract requires management to make estimates and judgments that affect reported amounts of commission expense in each period. Actual results may differ from management’s estimates. Variable Interest Entities The Company accounted for entities qualifying as variable interest entities (“VIEs”) in accordance with ASC Topic 810, Consolidation (“ASC 810”). VIEs are required to be consolidated by the primary beneficiary. The primary beneficiary is the entity that holds the majority of the beneficial interests in the VIE. A VIE is an entity for which the primary beneficiary’s interest in the entity can change with changes in factors other than the amount of investment in the entity. From time to time, the Company enters into an LMA in connection with pending acquisitions or dispositions of radio stations and the requirements of ASC 810 may apply, depending on the facts and circumstances related to each transaction. Adoption of New Accounting Standards ASU 2016-09 - Compensation - Stock Compensation ("ASU 2016-09"). In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, which provides guidance for employee stock-based payments. This update removes the requirement that reporting entities present tax benefits as excess cash flows from financing activities and cash flows from operating activities. As a result of this amendment, cash flows related to excess tax benefits will be classified only in operating activities. The Company adopted ASU 2016-09 effective January 1, 2017. As a result of adoption, in the first quarter of 2017, the Company recorded an adjustment to accumulated deficit of approximately $0.6 million to recognize net operating loss carryforwards attributable to excess tax benefits on stock compensation that had not been previously recognized in additional paid in capital. The Company is continuing its practice of estimating forfeitures and recording cash paid for withholding taxes as a financing activity. ASU 2017-04 - Intangibles - Goodwill and Other ("ASU 2017-04"). In January 2017, the FASB issued ASU 2017-04 to simplify the accounting for goodwill impairment. The update eliminates the requirement to perform Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Upon effectiveness of this update, a goodwill impairment is the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains substantially unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The Company early adopted ASU 2017-04 effective January 1, 2017. There was no impact on the Company's financial statements as a result of the adoption of this standard. Recent Accounting Standards Updates ASU 2014-09 and related updates - Revenue from Contracts with Customers ("ASU 2014-09"). In May 2014, the FASB issued ASU 2014-09 which outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued ASU 2015-14 - Deferral of the Effective Date ("ASU 2015-14"), which delayed the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended, is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 - Principal versus Agent Considerations ("ASU 2016-08") which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10 - Identifying Performance Obligations and Licensing ("ASU 2016-10") which amends the revenue recognition guidance on accounting for licenses of intellectual property and identifying performance obligations as well as clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 - Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12") which provides clarifying guidance in certain narrow areas such as an assessment of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition as well as adds certain practical expedients. In December 2016, the FASB issued ASU 2016-20 - Technical Corrections and Improvements ("ASU 2016-20") which provides technical corrections and improvements to Topic 606. In March 2017, the FASB issued ASU 2017-05 - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets ("ASU 2017-05") which clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of non-financial assets, including partial sales of real estate. In May 2017, the FASB issued ASU 2017-10 - Determining the Customer of the Operation Services ("ASU 2017-10") which clarifies the diversity in practice in how an operating entity determines the customer of the operation services for transactions within the scope of ASC 853, Service Concession Arrangements, by clarifying that the grantor is the customer of the operation services in all cases for those arrangements. The amendments also allow for a more consistent application of other aspects of the revenue guidance, which are affected by this customer determination. The amendments in ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-05 and ASU 2017-10 may be applied either retrospectively to each prior period presented or retrospectively with the cumulative effect of initially applying such updates at the date of initial application. The Company created a revenue recognition implementation team which has overseen the planning, testing and implementation of ASC 606. The responsibilities of this team include developing an appropriate testing methodology, performing the testing of contracts and evaluating the impact of the new revenue recognition standard on the Company's financial statements. The Company will adopt the new standard using a modified retrospective approach effective January 1, 2018. The most significant impact of adopting the new standard on the Company's financial statements will primarily relate to a change in the recognition of costs incurred to obtain a contract. Beginning on January 1, 2018, sales commissions directly related to obtaining new customers will be capitalized at the onset of a contract and amortized over an estimated customer life. Under the Company's accounting policy, prior to January 1, 2018, all such costs were expensed when the relevant advertisements are aired. The change in timing of the recognition of sales commission costs is not expected to have a material impact on the consolidated financial statements, including retained earnings or disclosures. Also, the accounting for the estimate of variable consideration is not materially different compared to the Company's current practice. The new standard is expected to impact the Company's internal control environment, including the Company's financial statement disclosure controls, business process controls, new systems and processes, and enhancements to existing systems and processes. ASU 2016-01 - Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). In January 2016, the FASB issued ASU 2016-01 which enhances the reporting model for financial instruments including aspects of recognition, measurement, presentation and disclosure. The new guidance revises the accounting requirements related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The update also changes certain disclosure requirements associated with the fair value of financial instruments. These changes will require an entity to measure, at fair value, investments in equity securities and other ownership interests in an entity - including investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method - and recognize the changes in fair value within net income. ASU 2016-01 will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. In February 2018, the FASB issued ASU 2018-03 - Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2018-03") which provides an option for a company to "un-elect" the measurement alternative and elect to account for the investment at fair value through current earnings. However, once a company makes this election for a particular investment, it must apply the fair value through current earnings model to all identical investments and/or similar investments from the same issuer. Further, a company cannot elect the measurement alternative for future purchases of identical or similar investments of the same issuer. Early adoption of ASU 2016-01 is not permitted, except for certain amendments within the ASU. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2016-02 - Leases ("ASU 2016-02"). In February 2016, the FASB issued ASU 2016-02 which provides updated guidance for the accounting for leases. This update requires lessees to recognize assets and liabilities for the rights and obligations created by leases with a term longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. A modified retrospective transition method is required, with the option to elect certain practical expedients. Early adoption is permitted. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements and plans to adopt the new standard effective January 1, 2019. ASU 2016-15 - Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). In August 2016, the FASB issued ASU 2016-15 which provides guidance for several new and/or revised disclosures pertaining to the classification of certain cash receipts and cash payments on the statement of cash flows, including contingent consideration payments made after a business acquisition. ASU 2016-15 will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company plans to adopt this standard effective January 1, 2018 and does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2016-16. - Intra-Entity Transfers of Assets Other than Inventory ("ASU 2016-16"). In October 2016, the FASB issued ASU 2016-16. The amendments in the ASU provide guidance for the accounting for the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs between entities in different tax jurisdictions. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2016-18 - Restricted Cash ("ASU 2016-18"). In November 2016, the FASB issued ASU 2016-18 which provides guidance for the accounting for the disclosure of restricted cash on the statement of cash flows. ASU 2016-18 will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. As of December 31, 2017 and December 31, 2016, the Company had approximately $9.0 million and $8.0 million in restricted cash, respectively, on its Consolidated Balance Sheets. Upon adoption of ASU 2016-18, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of the period, respectively, in the Company's Consolidated Balance Sheets for all periods presented; additionally, separate line items showing changes in restricted cash balances will be eliminated from its Consolidated Statement of Cash Flows. The Company plans to adopt this standard effective January 1, 2018 and does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2017-01 - Clarifying the Definition of a Business ("ASU 2017-01"). In January 2017, the FASB issued guidance that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new standard is effective for fiscal years, and interim periods within fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company plans to adopt this standard effective January 1, 2018 and does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2017-09 - Scope of Modification Accounting ("ASU 2017-09"). In May 2017, the FASB issued an update to guidance on Topic 718, Compensation—Stock Compensation that clarifies when changes to the terms or conditions of a share-based award must be accounted for as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 will be effective for all entities for annual periods, and interim periods within annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company plans to adopt this standard effective January 1, 2018 and does not expect the adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. |
Restricted Cash |
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Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash As of December 31, 2017 and 2016, the Company’s Consolidated Balance Sheets included approximately $9.0 million and $8.0 million, respectively, in restricted cash. Restricted cash is used primarily to collateralize standby letters of credit for certain leases and insurance policies in addition to securing certain transactions as dictated by the financial institutions used by the Company. |
Property and Equipment |
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Property and Equipment | Property and Equipment Property and equipment consisted of the following as of December 31, 2017 and 2016 (dollars in thousands):
Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $28.7 million, $31.1 million and $33.0 million, respectively. |
Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following tables present goodwill balances and accumulated impairment losses on a segment and consolidated basis as of December 31, 2016 and December 31, 2017 (dollars in thousands): Radio Station Group
Westwood One
Consolidated
The following table presents intangible asset balances, changes therein and dispositions and amortization thereof during the years ended December 31, 2016 and December 31, 2017. (dollars in thousands):
The Company's definite-lived intangible assets primarily consist of broadcast advertising and affiliate relationships. Total amortization expense related to the Company’s definite-lived intangible assets was $33.5 million, $56.2 million and $69.1 million for the years ended December 31, 2017, 2016, and 2015, respectively. As of December 31, 2017, estimated future amortization expense related to the Company's definite-lived intangible assets was as follows (dollars in thousands):
The Company performs annual impairment testing of its Federal Communications Commission ("FCC") licenses and goodwill as of December 31 of each year and on an interim basis if events or circumstances indicate that FCC licenses or goodwill may be impaired. The Company reviews the carrying value of its definite-lived intangible assets, primarily broadcast advertising and affiliate relationships, for recoverability prior to its annual impairment test of goodwill and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Impairment Test - Definite-Lived Intangibles The Company tests definite-lived intangible assets for recoverability by comparing the carrying value of an asset group to its undiscounted cash flows. As of December 31, 2017, the Company considered its November 29, 2017 chapter 11 cases as an indicator of impairment for its definite-lived intangible assets. Based on the results of the recoverability test, however, the Company determined that the future undiscounted cash flows expected to result from the continued use of the assets and their eventual disposition continued to exceed the carrying value of the applicable asset groups and were therefore recoverable. The Company did not recognize any impairment charges for its definite-lived intangible assets in 2017 as a result of this analysis. During the second quarter of 2016, the Company recorded an impairment charge to its definite-lived intangible assets of $1.8 million at the Westwood One segment for all customer lists and trademark definite-lived intangible assets related to the print publication of NASH Country Weekly as the Company re-positioned the print publication to a digital only medium. There were no similar impairments in 2017. Annual Impairment Test - Goodwill The Company assess the recoverability of our goodwill annually, or more frequently whenever events or substantive changes in circumstances indicate that the carrying amount of a reporting unit may exceed its fair value. We test goodwill for impairment at the reporting unit level. All of our radio markets comprise one reporting unit ("Reporting Unit 1" or the "Radio Station Group") in which as of December 31, 2016 there was no longer any goodwill, Westwood One comprises the second reporting unit ("Reporting Unit 2" or "Westwood One") and the third reporting unit, in which there is also no goodwill, continues to consist of all of our non-radio lines of business ("Reporting Unit 3"). For our annual goodwill impairment test, we performed the Step 1 goodwill test (the “Step 1 test”) and compared the fair value of each reporting unit to the carrying value of its net assets as of December 31, 2017 as follows: Step 1 Goodwill Test In performing our annual impairment testing of goodwill, fair value was calculated using a discounted cash flow analysis, which is an income approach. The discounted cash flow analysis requires the projection of future cash flows and the discounting of these cash flows to their present value equivalent via a discount rate. We used a five-year projection period for our operating cash flow projections. We made certain assumptions regarding future revenue growth based on industry market data and historical and expected performance. We then projected future operating expenses based primarily on historical financial performance in order to derive operating profits, which we combined with expected working capital changes and capital expenditures to determine operating cash flows. Our projections were based on then-current market and economic conditions and our historical knowledge of each of the relevant reporting units. During the 2017 year, based on interim financial performance, we determined that no indicators were present which would suggest the fair value of the reporting units may have declined below the carrying value. The material assumptions utilized in these analyses, for the reporting unit that has goodwill, included overall future market revenue growth rates for the residual years after the projection period of (1.0)% and a weighted average cost of capital of 9.3%. The residual year growth rate was estimated based on a perpetual nominal growth rate, which was based on long-term industry projections obtained from third party sources. The weighted-average cost of capital was determined based on (i) the cost of equity, which included estimates of the risk-free return, stock risk premiums and industry beta; (ii) the cost of debt, which included estimates for corporate borrowing rates and (iii) estimated average percentages of equity and debt in capital structures. The table below presents the percentages by which the fair value was above the carrying value of the Company's Westwood One reporting unit, which contains goodwill, under the Step 1 test as of December 31, 2017 (dollars in thousands).
The Company did not incur any impairment charges related to goodwill during the year ended December 31, 2017. In performing the Company's 2016 annual impairment testing of goodwill, the Company recorded a non-cash impairment charge of $568.1 million, reducing the goodwill in Reporting Unit 1 to $0.0 million at December 31, 2016. If actual results or the underlying material assumptions are less favorable than those projected by the Company or if a triggering event occurs or circumstance change that would more likely than not reduce the fair value of our goodwill below the amounts reflected in the Consolidated Balance Sheet, we may be required to recognize impairment charges in future periods. Annual Impairment Test - FCC Licenses As part of the annual impairment testing of indefinite-lived intangibles, in addition to testing goodwill for impairment, the Company also tests its FCC licenses for impairment during the fourth quarter of each year and on an interim basis if events or circumstances indicate that the asset may be impaired. As part of the overall planning associated with the test, the Company determined that its geographic markets are the appropriate unit of accounting for FCC license impairment testing and therefore the Company has combined its FCC licenses within each geographic market cluster into a single unit of accounting for impairment testing purposes. For the impairment test, we utilized the income approach, specifically the Greenfield Method. This approach values a license by calculating the value of a hypothetical start-up company that initially has no assets except the asset to be valued (the license). The value of the asset under consideration (the license) can be considered as equal to the value of this hypothetical start-up company. In completing the appraisals, we conducted a thorough review of all aspects of the assets being valued. The estimated fair values of our FCC licenses represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the Company and willing market participants at the measurement date. The estimated fair value also assumes the highest and best use of the asset by market participants, considering a use of the asset that is physically possible, legally permissible and financially feasible. A basic assumption in our valuation of these FCC licenses was that these radio stations were new radio stations, signing on the air as of the date of the valuation. We assumed the competitive situation that existed in those markets as of that date, except that these stations were just beginning operations. In estimating the value of the licenses, we began with market revenue projections. Next, we estimated the percentage of the market’s total revenue, or market share, that market participants could reasonably expect an average start-up station to attain, as well as the duration (in years) required to reach the average market share. The estimated average market share was computed based on market share data, by type (i.e., AM and FM). After market revenue and market shares have been estimated, operating expenses, including depreciation based on assumed investments in fixed assets and future capital expenditures of a start-up station or operation are similarly estimated based on industry-average cost data. Appropriate estimated income taxes are then subtracted, estimated depreciation added back, estimated capital expenditures subtracted, and estimated working capital adjustments are made to calculate estimated free cash flow during the build-up period until a steady state or mature “normalized” operation is achieved. The analysis included overall future market revenue growth rates for the residual years after the projection period of (1.0)% and a weighted average cost of capital of 9.3%. The residual year growth rate was estimated based on a perpetual nominal growth rate, which was based on long-term industry projections obtained from third party sources. The weighted average cost of capital was based on (i) the cost of equity, which included estimates of the risk-free return, stock risk premiums and industry beta; (ii) the cost of debt, which included estimates for corporate borrowing rates; and (iii) estimated average percentages of equity and debt in other radio broadcasters capital structures. In order to estimate what listening audience share could be expected to be achieved for each station by market, we analyzed the average local commercial share garnered by similar AM and FM stations competing in those radio markets. We may make adjustments to the listening share and revenue share based on a station's signal coverage within the market and the surrounding area population as compared to the other stations in the market. Based on our knowledge of the industry and familiarity with similar markets, we determined that approximately three years would be required for the stations to reach maturity. We also incorporated the following additional assumptions into the discounted cash flow valuation model:
During the first three quarters of 2017, based on the Company's review of the radio industry's financial performance, it determined that no indicators were present which would suggest the fair value of its FCC licenses may have declined below the carrying value. However, as part of the Company's test of its FCC licenses for impairment during the fourth quarter of 2017, the Company determined as part of its review of the assumptions utilized in the Greenfield Method that the radio industry's decreasing market share of total advertising revenues had an adverse impact on its future market revenue growth rate assumption, which is now negative, as disclosed above. As a result of the impairment test of our FCC licenses, conducted as of December 31, 2017, the Company recorded a non-cash impairment charge of $335.9 million. As a result of the impairment test of its FCC licenses conducted as of December 31, 2016, the Company recorded a non-cash impairment charge of $35.0 million. If the macroeconomic conditions of the radio industry or the underlying material assumptions are less favorable than those projected by the Company or if a triggering event occurs or circumstance change that would more likely than not reduce the fair value of FCC licenses below the amounts reflected in the Consolidated Balance Sheet, the Company may be required to recognize additional impairment charges in future periods. |
Accounts Payable and Accrued Expenses |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following as of December 31, 2017 and 2016 (dollars in thousands):
Subsequent to the balance sheet date, as permitted under the Bankruptcy Code, the Company has rejected certain of its pre-petition contracts and is calculating its estimated liability to the affected unsecured creditors. As a result, additional amounts may be included in liabilities subject to compromise in future periods and reduce the Company's accounts payable and accrued expenses. |
Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt The Company’s long-term debt consisted of the following at December 31, 2017 and 2016 (dollars in thousands):
Future maturities of long-term debt (dollars in thousands):
In connection with the Company’s voluntary petitions for reorganization, the $1.722 billion outstanding under the Term Loan and the $610.0 million outstanding in 7.75% Senior Notes has been reclassified to liabilities subject to compromise in the Company's Consolidated Balance Sheet as of December 31, 2017. As a result of the Company’s chapter 11 cases, the Company expensed the entire balance of $25.9 million of deferred financing costs and debt discount during the fourth quarter of 2017 to reorganization items, net, in the Consolidated Statement of Operations for the year ended December 31, 2017. For additional information, see the Current Bankruptcy Proceedings section of Note 1 "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies." Credit Agreement The Company's Credit Agreement consists of a Term Loan (the “Term Loan”) with a stated maturity date in December 2020 and a $200.0 million revolving credit facility, with a $30.0 million sublimit for letters of credit (the “Revolving Credit Facility”) with a stated maturity date in December 2018. Notwithstanding the stated maturity date of the Term Loan, if on January 30, 2019, the aggregate principal amount of 7.75% Senior Notes outstanding exceeds $200.0 million, the Term Loan maturity date will be accelerated to January 30, 2019. At December 31, 2017, the Company had $1.722 billion outstanding under the Term Loan. No amounts were outstanding under the Revolving Credit Facility at either December 31, 2017 or 2016. On August 29, 2017, the Company used proceeds from sale of certain land and buildings to repay approximately $81.7 million of the Term Loan borrowings. At December 31, 2016, $1.810 billion was outstanding under the Term Loan. Amounts outstanding under the Term Loan amortize at a rate of 1.0% per annum of the original principal amount of the Term Loan, payable quarterly, with the balance payable on the maturity date. Borrowings under the Term Loan and Revolving Credit Facility, if available, bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), plus 3.25% on LIBOR-based borrowings and 2.25% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.0% under the Term Loan and Revolving Credit Facility. Base Rate-based borrowings are subject to a Base Rate floor of 2.0% under the Term Loan and Revolving Credit Facility. Base Rate is defined, for any day, as the rate per annum equal to the highest of (i) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 0.5%, (ii) the prime commercial lending rate of JPMorgan Chase Bank, N.A., as established from time to time, and (iii) 30 day LIBOR plus 1.0%. At December 31, 2017, the Term Loan bore interest at 4.82% per annum. In connection with the Company's chapter 11 cases, the Company is required to make adequate protection payments on the Term Loan. The amounts of these payments are calculated under the same terms as the interest and at the rates described above. During the pendency of the Bankruptcy Petitions, ASC 852 requires the Company to recognize the adequate protection payments as a reduction to the principal balance of the Term Loan. Under the terms of the Credit Agreement, a commitment fee in the amount of 0.50% per year, payable monthly, is payable on the unused portion of the commitments. The representations, covenants and events of default in the Credit Agreement are customary for financing transactions of this nature. Events of default in the Credit Agreement include, among others: (a) the failure to pay obligations when due; (b) the failure to comply with (and not timely remedy, if applicable) certain covenants; (c) certain defaults and accelerations under other indebtedness; (d) the occurrence of bankruptcy or insolvency events; (e) certain judgments against the Company or any of its restricted subsidiaries; (f) the loss, revocation or suspension of, or any material impairment in the ability to use one or more of, any material FCC licenses; (g) any representation of warranty made, or report, certificate or financial statement delivered to the lenders subsequently proven to have been incorrect in any material respect; and (h) the occurrence of a Change in Control (as defined in the Credit Agreement). Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Agreement and the ancillary loan documents as a secured party. Any efforts to enforce such obligations upon the occurrence of an event of default have been automatically stayed as a result of the Company's Bankruptcy Petition and the Term Loan holders' rights of enforcement in respect of these obligations are subject to the applicable provisions of the Bankruptcy Code. In the event amounts were outstanding under the Revolving Credit Facility or any letters of credit were outstanding that had not been collateralized by cash as of the end of each quarter, the Credit Agreement required compliance with a consolidated first lien leverage ratio covenant. The required ratio at December 31, 2017 and 2016 was 4.25 to 1 and 5.00 to 1, respectively. The ratio was to decrease to 4.0 to 1 at March 31, 2018. At December 31, 2017, the Company's actual leverage ratio would have been in excess of the required ratio. As a result of the Company's Bankruptcy Petitions, the Revolving Credit Facility was terminated, as such, at December 31, 2017 the Company had no borrowings outstanding under the Revolving Credit Facility. Certain mandatory prepayments on the Term Loan are required upon the occurrence of specified events, including upon the incurrence of certain additional indebtedness, upon the sale of certain assets and upon the occurrence of certain condemnation or casualty events, and from excess cash flow. The Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ obligations under the Credit Agreement are collateralized by a first priority lien on substantially all of the Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ assets in which a security interest may lawfully be granted, including, without limitation, intellectual property and substantially all of the capital stock of the Company’s direct and indirect domestic wholly-owned subsidiaries and 66% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the Credit Agreement are guaranteed by the Company and substantially all of its restricted subsidiaries, other than Cumulus Holdings. 7.75% Senior Notes On May 13, 2011, the Company issued $610.0 million aggregate principal amount of 7.75% Senior Notes due 2019 (the “7.75% Senior Notes”). On September 16, 2011, the Company and Cumulus Holdings entered into a supplemental indenture with the trustee under the indenture governing the 7.75% Senior Notes which provided for, among other things, the (i) assumption by Cumulus Holdings of all obligations of the Company; (ii) substitution of Cumulus Holdings for the Company as issuer; (iii) release of the Company from all obligations as original issuer; and (iv) Company’s guarantee of all of Cumulus Holdings’ obligations, in each case under the indenture and the 7.75% Senior Notes. Interest on the 7.75% Senior Notes is payable on May 1 and November 1 of each year. The 7.75% Senior Notes mature on May 1, 2019. Cumulus Holdings, as issuer of the 7.75% Senior Notes, may redeem all or part of the 7.75% Senior Notes at any time at a price equal to 100% of the principal amount, plus a “make-whole” premium. If Cumulus Holdings sells certain assets or experiences specific kinds of changes in control, it will be required to make an offer to purchase the 7.75% Senior Notes. In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, the Company also guaranteed the 7.75% Senior Notes. In addition, each existing and future domestic restricted subsidiary that guarantees the Company’s indebtedness, Cumulus Holdings’ indebtedness or indebtedness of the Company’s subsidiary guarantors (other than the Company’s subsidiaries that hold the licenses for the Company’s radio stations) guarantees, and will guarantee, the 7.75% Senior Notes. The 7.75% Senior Notes are senior unsecured obligations of Cumulus Holdings and rank equally in right of payment to all existing and future senior unsecured debt of Cumulus Holdings and senior in right of payment to all future subordinated debt of Cumulus Holdings. The 7.75% Senior Notes guarantees are the Company’s and the other guarantors’ senior unsecured obligations and rank equally in right of payment to all of the Company’s and the other guarantors’ existing and future senior debt and senior in right of payment to all of the Company’s and the other guarantors’ future subordinated debt. The 7.75% Senior Notes and the guarantees are effectively subordinated to any of Cumulus Holdings’, the Company’s or the guarantors’ existing and future secured debt to the extent of the value of the assets securing such debt. In addition, the 7.75% Senior Notes and the guarantees are structurally subordinated to all of the liabilities of the Company and its subsidiaries. The indenture governing the 7.75% Senior Notes contains representations, covenants and events of default customary for financing transactions of this nature. Any efforts to enforce obligations upon the occurrence of an event of default have been automatically stayed as a result of the Company's Chapter 11 Filing and the holders of the 7.75% Senior Notes rights of enforcement in respect to any obligations are subject to the applicable provisions of the Bankruptcy Code. As described in more detail in Note 1, "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies", on October 30, 2017, the Restructuring Committee of the Board of Directors authorized the Company to forgo the November 1, 2017 scheduled interest payment of $23.6 million on the 7.75% Senior Notes. The Company will continue to forgo interest payments on the 7.75% Senior Notes while under bankruptcy protection. As a result, the Company's interest expense for the year ended December 31, 2017 was approximately $3.9 million lower than it would have been absent the filing of the voluntary petitions for reorganization. Accounts Receivable Securitization Facility On December 6, 2013, the Company entered into a 5-year, $50.0 million Securitization Facility with Wells Fargo (as successor to General Electric Capital Corporation), as a lender, as swingline lender and as administrative agent (together with any other lenders party thereto from time to time, the “Lenders”). In connection with the entry into the Securitization Facility, pursuant to a Receivables Sale and Servicing Agreement, dated as of December 6, 2013 (the “Sale Agreement”), certain subsidiaries of the Company (collectively, the “Originators”) were able to sell and/or contribute their accounts receivable (representing up to all of the Company’s accounts receivable) to a special purpose entity and wholly-owned subsidiary of the Company (the “SPV”). The SPV could thereafter make borrowings from the Lenders, which borrowings were secured by those receivables, pursuant to an Amended and Restated Receivables Funding and Administration Agreement, dated as of March 15, 2017 (the “Funding Agreement”). Cumulus Holdings serviced the accounts receivable on behalf of the SPV. On November 28, 2017, the Company terminated the Securitization Facility. No borrowings were outstanding under the Securitization Facility as of the termination date or December 31, 2016. Amortization of Debt Discount and Debt Issuance Costs For each of the years ended December 31, 2017, 2016, and 2015 the Company amortized $9.4 million, $10.0 million, and $9.5 million respectively, of debt discount and debt issuance costs related to its Term Loan and 7.75% Senior Notes. As a result of the Company’s chapter 11 cases, the Company expensed the entire remaining balance of $25.9 million of deferred financing costs and debt discount during the fourth quarter of 2017. This amount is included in reorganization items, net in the Consolidated Statement of Operations for the year ended December 31, 2017. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The three levels of the fair value hierarchy to be applied when determining fair value of financial instruments are described below: Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table shows the gross amount and fair value of the Company’s Term Loan and 7.75% Senior Notes (dollars in thousands):
As of December 31, 2017, the Company used the closing trading prices of the last trade transaction of 86.0% to calculate the fair value of the Term Loan and 17.4% to calculate the fair value of the 7.75% Senior Notes. As of December 31, 2016, the Company used the closing trading prices of the last trade transaction of 67.8% to calculate the fair value of the Term Loan, and 40.9% to calculate the fair value of the 7.75% Senior Notes. |
Liabilities Subject to Compromise |
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Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise | Liabilities Subject to Compromise As discussed in Note 1, "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies" beginning on the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities Subject to Compromise” reflects the expected allowed amount of the prepetition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities Subject to Compromise at December 31, 2017 consisted of the following (in thousands):
Subsequent to the Balance Sheet date, as permitted under the Bankruptcy Code, the Company has rejected certain of its pre-petition contracts and is calculating its estimated liability to the affected unsecured creditors. As a result, additional amounts may be included in liabilities subject to compromise in future periods. Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. Reorganization Items, net Reorganization items incurred as a result of the chapter 11 cases are presented separately in the accompanying statements of operations for the year ended December 31, 2017 and were as follows (in thousands):
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Reorganization Items, net |
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Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization Items, net | Liabilities Subject to Compromise As discussed in Note 1, "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies" beginning on the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities Subject to Compromise” reflects the expected allowed amount of the prepetition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities Subject to Compromise at December 31, 2017 consisted of the following (in thousands):
Subsequent to the Balance Sheet date, as permitted under the Bankruptcy Code, the Company has rejected certain of its pre-petition contracts and is calculating its estimated liability to the affected unsecured creditors. As a result, additional amounts may be included in liabilities subject to compromise in future periods. Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. Reorganization Items, net Reorganization items incurred as a result of the chapter 11 cases are presented separately in the accompanying statements of operations for the year ended December 31, 2017 and were as follows (in thousands):
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Stockholders' Equity |
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Equity [Abstract] | |||||||||
Stockholders' Equity | Stockholders’ Equity As discussed in Note 1, "Description of Business, Basis of Presentation and Summary of Significant Accounting Policies" beginning on the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. Pursuant to the Plan and Disclosure Statement filed on February 12, 2018, if the Plan is confirmed, all of the equity interests in the Company are expected to be canceled or extinguished on the date that the Company emerges from bankruptcy. For information on the Company's October 12, 2016 Reverse Stock Split and the resulting adjustments to authorized, issued and outstanding common stock, warrants and options, see Note 1, "Description of Business, Interim Financial Data and Basis of Presentation: Reverse Stock Split." The Company is authorized to issue an aggregate of 268,830,609 shares of stock divided into four classes consisting of: (i) 93,750,000 shares designated as Class A common stock; (ii) 75,000,000 shares designated as Class B common stock; (iii) 80,609 shares designated as Class C common stock, and (iv) 100,000,000 shares of preferred stock. On June 5, 2017, the Company’s Board of Directors adopted a stockholder rights plan, which is scheduled to expire in June 2018. Pursuant to the rights plan, the Company declared a dividend of one right for each outstanding share of Class A common stock of the Company, payable to holders of record on June 15, 2017. The rights initially trade with the Company’s Class A common stock and will generally become exercisable only if any person (or any persons acting in concert or as a group) acquires a voting or economic position in 4.99% or more of the Company’s outstanding Class A common stock. If the rights become exercisable, all holders of rights (other than any triggering person) will be entitled to acquire shares of Class A common stock at a 50% discount or the Company may exchange each right held by such holders for one share of Class A common stock. Under the rights plan, any person that owned more than 4.99% of the Company’s outstanding Class A common stock may continue to own its shares of Class A common stock but may not acquire a voting or economic interest in any additional shares of Class A common stock without triggering the rights plan. Common Stock Shares of Class A, Class B and Class C common stock are identical in all respects, except with regard to voting and conversion rights. The preferences, qualifications, limitations, restrictions, and the special or relative rights in respect of the common stock and the various classes of common stock are as follows:
The holders of all classes of common stock are entitled to share ratably in any dividends that may be declared by the Board of Directors of the Company. As of December 31, 2017 and 2016 there were no preferred shares outstanding. 2009 Warrants In June 2009, in connection with the execution of an amendment to the Company's then-existing credit agreement, the Company issued warrants to the lenders thereunder that allow them to acquire up to 156,250 shares of Class A common stock at an exercise price of $1.17 per share (the “2009 Warrants”). The 2009 Warrants expire on June 29, 2019. The number of shares of Class A common stock issuable upon exercise of the 2009 Warrants is subject to adjustment in certain circumstances, including upon the payment of a dividend in shares of Class A common stock. None of the 2009 warrants were converted during the year ended December 31, 2017 and 2016, and as of such date there were, 40,057 of the 2009 Warrants outstanding. Equity Held in Reserve Pursuant to the agreement governing the Company's acquisition of Citadel Broadcasting Company ("Citadel") on September 16, 2011 (the "Citadel Merger"), warrants to purchase 300,000 shares of the Company’s common stock were reserved for potential future issuance in connection with the settlement of certain remaining allowed, disputed or not reconciled claims related to Citadel's bankruptcy. As part of the June 2014 completion of proceedings related to Citadel's bankruptcy, the 300,000 shares were issued from treasury stock for $25.0 million. The equity held in reserve was included in additional paid-in-capital on the accompanying consolidated statement of stockholders' equity at December 31, 2015. Company Warrants As a component of the Company's September 16, 2011 acquisition of Citadel Broadcasting Corporation (the "Citadel Merger") and the related financing transactions, the Company issued warrants to purchase an aggregate of 9.0 million shares of Class A common stock (the "Company Warrants") under a warrant agreement dated September 16, 2011 (the "Warrant Agreement"). The Company Warrants are exercisable at any time prior to June 3, 2030 at an exercise price of $0.01 per share with each Company Warrant providing the right to purchase one share. The number of shares for which the Company Warrants are exercisable is not subject to any anti-dilution protection, other than standard adjustments in the case of stock splits, dividends and certain other similar events. Pursuant to the terms and conditions of the Warrant Agreement, upon the request of a holder, the Company has the discretion to issue, upon exercise of the Company Warrants, shares of Class B common stock in lieu of an equal number of shares of Class A common stock and, upon request of a holder and at the Company’s discretion, the Company has the right to exchange such warrants to purchase an equivalent number of shares of Class B common stock for outstanding warrants to purchase shares of Class A common stock. Exercise of the Company Warrants is subject to compliance with applicable FCC regulations, and the Company Warrants are exercisable provided that ownership of the Company’s securities by the holder does not cause the Company to violate applicable FCC rules and regulations relating to foreign ownership of broadcasting licenses. Holders of Company Warrants are entitled to participate ratably in any distributions on the Company’s common stock on an as-exercised basis. No distribution will be made to holders of Company Warrants or common stock if (i) an FCC ruling, regulation or policy prohibits such distribution to holders of Company Warrants or (ii) the Company’s FCC counsel opines that such distribution is reasonably likely to cause (a) the Company to violate any applicable FCC rules or regulations or (b) any holder of Company Warrants to be deemed to hold an attributable interest in the Company. No Company Warrants were exercised during the year ended December 31, 2017. During the year ended December 31, 2016, Company Warrants were exercised to purchase 43,192 shares of Class A common stock. As of December 31, 2017 and 2016, 31,955 Company Warrants remained outstanding. Crestview Warrants Also on September 16, 2011, but pursuant to a separate warrant agreement, the Company issued warrants to purchase 1.0 million shares of Class A common stock with an exercise price, as adjusted to date, of $34.56 per share (the "Crestview Warrants"). The Crestview Warrants are exercisable until September 16, 2021, and the per share exercise price is subject to standard weighted-average adjustments in the event that the Company issues additional shares of common stock or common stock derivatives for less than the fair market value per share, as defined in the Crestview Warrants, as of the date of such issuance. In addition, the number of shares of Class A common stock issuable upon exercise of the Crestview Warrants, and the exercise price of the Crestview Warrants, are subject to adjustment in the case of stock splits, dividends and certain other similar events. As of December 31, 2017, all 1.0 million Crestview Warrants remained outstanding. |
Stock-Based Compensation Expense |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company uses the Black-Scholes option pricing model to estimate the fair value on the date of grant of stock options issued. The fair value of stock options is determined by the Company’s stock price, historical stock price volatility over the expected term of the awards, risk-free interest rates and expected dividends. With respect to restricted stock awards, the Company recognizes compensation expense over the vesting period equal to the grant date fair value of the shares awarded in accordance with ASC 718 - Compensation - Stock Compensation. To the extent non-vested restricted stock awards include performance or market vesting conditions, management uses the requisite service period to recognize the cost associated with the award. Generally, the Company’s grants of stock options vest over four years and have a maximum contractual term of ten years. The Company estimates the volatility of its common stock by using a weighted average of historical stock price volatility over the expected term of the options. The Company bases the risk-free interest rate that it used in its option pricing model on United States Treasury issues with terms similar to the expected term of the options. The Company does not anticipate paying any cash dividends on the class of stock subject to granted stock options in the foreseeable future and therefore used an expected dividend yield of zero in the option pricing model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from estimates. Stock-based compensation expense is recorded only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards. During 2015, the Company granted 30,365 shares of time-vesting restricted Class A common stock, with an aggregate grant date fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year. During 2016, the Company granted 0.4 million stock options with an aggregate grant date fair value of $0.6 million. The options range in exercise price from $1.34 to $34.72 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of each award vesting on each of the first two anniversaries thereof, and 20% of each award vesting on each of the next two anniversaries thereof. During 2017, the Company granted 0.1 million stock options with an aggregate grant date fair value of $0.1 million. The options range in exercise price from $0.41 to $1.03 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of each award vesting on each of the first two anniversaries thereof, and 20% of each award vesting on each of the next two anniversaries thereof. The total fair value of restricted stock awards that vested during the years ended December 31, 2017 and 2016 was $0.0 million and $0.03 million, respectively. In connection with certain 2015 employee departures, the Company recorded accelerated stock compensation costs of $8.7 million for the year ended December 31, 2015. These costs are included in corporate expenses and additional paid-in capital in the accompanying consolidated financial statements. For the years ended December 31, 2017, 2016 and 2015, the Company recognized approximately $1.6 million, $2.9 million and $21.0 million in non-cash stock-based compensation expense, respectively, related to equity awards. The associated tax benefits related to these non-cash stock-based compensation awards for the years ended December 31, 2017, 2016 and 2015 were $0.0 million, $0.2 million and $8.4 million, respectively. As of December 31, 2017, unrecognized stock-based compensation expense of approximately $0.5 million related to equity awards is expected to be recognized over a weighted-average remaining life of 0.79 years. As of December 31, 2016, unrecognized stock-based compensation expense of approximately $2.8 million related to equity awards was expected to be recognized over a weighted average remaining life of 1.40 years. Unrecognized stock-based compensation expense for equity awards will continue to be adjusted for future changes in estimated forfeitures. As of December 31, 2017, the total number of shares of common stock that remain authorized, reserved and available for issuance under any of the Company’s equity incentive plans was approximately 1.4 million, not including shares underlying outstanding awards. The Company is only authorized to make additional award grants under the 2011 Equity Incentive Plan. There were no stock options exercised during the years ended December 31, 2017 or December 31, 2016. On May 18, 2017 the Company adopted the 2017 Supplemental Incentive Plan (the "2017 SIP"), which provides participating executives of the Company with the opportunity to earn cash payments in ratable installments over the last three quarters of 2017, based on the Company's year-to-date performance at the end of each respective period, commencing with the second quarter of 2017. In order to be eligible to participate in the 2017 SIP, each participant therein had to agree to the cancellation of all of such participant's respective outstanding equity incentive awards. During the year ended December 31, 2017, the participants forfeited an aggregate of 963,493 options. The following tables summarize the Company’s equity award activity for the year ended December 31, 2017:
2011 Equity Incentive Plan The Board adopted the 2011 Equity Incentive Plan on July 8, 2011. Also, on July 8, 2011, stockholders holding a majority of the outstanding voting power of the Company, upon the recommendation of the Board, approved the 2011 Equity Incentive Plan. The 2011 Equity Incentive Plan authorizes the grant of equity-based compensation in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other awards for the purpose of providing Cumulus Media’s non-employee directors, consultants, officers and other employees incentives and rewards that are aligned with the economic interests of the Company's shareholders. The 2011 Equity Incentive Plan is administered by the Compensation Committee. The Compensation Committee may delegate its authority under the 2011 Equity Incentive Plan. Total awards under the 2011 Equity Incentive Plan are limited to 4,375,000 shares (the “Authorized Plan Aggregate”) of Class A common stock. The 2011 Equity Incentive Plan also provides that: (i) the aggregate number of shares of Class A common stock actually issued or transferred upon the exercise of incentive stock options (“ISOs”) will not exceed 2,187,500 shares; (ii) the number of shares of Class A common stock issued as restricted stock, RSUs, performance shares, performance units and other awards (after taking into account any forfeitures and cancellations) will not, during the term of the 2011 Equity Incentive Plan, in the aggregate exceed 1,500,000 shares of Class A common stock; (iii) no participant will be granted stock options or SARs, in the aggregate, for more than 1,437,500 shares of Class A common stock during any calendar year; (iv) no participant will be granted awards of restricted stock, RSUs, performance shares or other awards that are intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), in the aggregate, for more than 375,000 shares of Class A common stock during any calendar year; and (v) no participant during any calendar year will be granted awards of performance units that are intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code, in the aggregate, for more than a maximum value of $5,000,000 as of their respective dates of grant. The 2011 Equity Incentive Plan provides that only shares with respect to awards that expire or are forfeited or canceled, or shares that were covered by an award the benefit of which is paid in cash instead of shares, will again be available for issuance under the 2011 Equity Incentive Plan. The following shares are not added back to the Authorized Plan Aggregate: (i) shares tendered in payment of a stock option exercise price; (ii) shares withheld by the Company to satisfy tax withholding obligations; and (iii) shares repurchased by the Company with stock option proceeds. Further, all shares covered by a SAR that is exercised and settled in shares, and whether or not all shares are actually issued to the participant upon exercise of the right, will be considered issued or transferred pursuant to the 2011 Equity Incentive Plan. The 2011 Equity Incentive Plan provides that generally: (i) stock options and SARs may not become exercisable by the passage of time sooner than one-third per year over three years except in the event of retirement, death or disability of a participant or in the event of a change in control (described below); (ii) stock options and SARs that become exercisable upon the achievement of Management Objectives (as defined below) cannot become exercisable sooner than one year from the date of grant except in the event of retirement, death or disability of a participant or in the event of a change in control; (iii) restricted stock and RSUs may not become unrestricted by the passage of time sooner than one-third per year over three years unless restrictions lapse sooner by virtue of retirement, death or disability of a participant or in the event of a change in control; (iv) the period of time within which Management Objectives relating to performance shares and performance units must be achieved will be a minimum of one year, subject to earlier lapse or modification by virtue of retirement, death or disability of a participant or in the event of a change in control; (v) restricted stock and RSUs that vest upon the achievement of Management Objectives cannot vest sooner than one year from the date of grant, but may be subject to earlier lapse or modification by virtue of retirement, death or disability of a participant or in the event of a change in control; and, (vi) as described below, a limited number of awards, however, including restricted stock and RSUs granted to non-employee directors, may be granted without regard to the above minimum vesting periods. Repricing of options and SARs is prohibited without stockholder approval under the 2011 Equity Incentive Plan. In general, a change in control will be deemed to have occurred if: (i) there is a consummation of a sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any person or group; (ii) a plan relating to the liquidation or dissolution of the Company is adopted; (iii) there is a consummation of any transaction (including, without limitation, any purchase, sale, acquisition, disposition, merger or consolidation) the result of which is that any person or group becomes the beneficial owner (excluding any options to purchase equity securities of the Company held by such person or group) of more than 50% of the aggregate voting power of all classes of capital stock of the Company having the right to elect directors under ordinary circumstances; or (iv) a majority of the members of the Board are not Continuing Directors. For purposes of this definition, a “Continuing Director” is, as of any date of determination, any member of the Board who (1) was a member of the Board on July 8, 2011 or (2) was nominated for election or elected to the Board with the approval of either two-thirds of the Continuing Directors who were members of the Board at the time of such nomination or election or two-thirds of those Company directors who were previously approved by Continuing Directors. The 2011 Equity Incentive Plan provides that dividends or other distributions on performance shares, restricted stock or RSUs that are earned or that have restrictions that lapse as a result of the achievement of Management Objectives will be deferred until and paid contingent upon the achievement of the applicable Management Objectives. The 2011 Equity Incentive Plan also provides that dividends and dividend equivalents will not be paid on stock options or SARs. The 2011 Equity Incentive Plan provides that no stock options or SARs will be granted with an exercise or base price less than the fair market value of the Class A common stock on the date of grant. The 2011 Equity Incentive Plan was designed to allow awards to qualify as qualified performance-based compensation under Section 162(m) of the Code to the extent applicable. The following performance metrics may be used as “Management Objectives”: profits, cash flow, returns, working capital, profit margins, liquidity measures, sales growth, gross margin growth, cost initiative and stock price metrics, and strategic initiative key deliverable metrics. As of December 31, 2017, there were outstanding options to purchase 2,461,753 shares of Class A common stock at exercise prices ranging from $0.41 to $51.68 per share under the 2011 Equity Incentive Plan, of which 152,956 options were unvested and 2,308,797 options were vested. 2008 Equity Incentive Plan As of December 31, 2017, there were outstanding vested options to purchase 47,376 shares of Class A common stock at exercise prices ranging from $20.32 to $26.40 per share under the 2008 Equity Incentive Plan. The Company is not authorized to issue additional grants under this plan. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax for the years ended December 31, 2017, 2016 and 2015 consisted of the following (dollars in thousands):
Total income tax differed from the amount computed by applying the federal statutory tax rate of 35.0% for the years ended December 31, 2017, 2016 and 2015 as a result of the following (dollars in thousands):
The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The Act, among other changes, reduces the US federal corporate tax rate from 35% to 21% for tax years after 2017. At December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, it has made a reasonable estimate of the effects on its existing deferred tax balances. The Company remeasured certain deferred tax assets and liabilities based on the federal rate at which they are expected to reverse in the future, which is generally 21%. However, the Company is still analyzing certain aspects of the Act, including full expensing of certain capital expenditures, the impact of executive compensation tax changes, and analysis of state tax implications and corresponding impact to changes in state valuation allowances. Additional guidance and clarification from regulatory authorities could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of the Company’s deferred tax balance was a tax benefit of approximately $91.4 million, which is included as a component of income tax benefit from continuing operations. Given the substantial changes with the Act, the estimated financial impacts are provisional and subject to further interpretation and clarification of the Act during 2018. In accordance with Staff Accounting Bulletin 118 (“SAB 118”), changes to these provisional amounts will be finalized within the next 12 months and will be recorded in the period in which the analysis is complete. As of December 31, 2017 the Company has recorded no estimate under SAB 118 for the state tax implications and corresponding state tax valuation allowance impact while the Company continues to refine its analysis of state tax conformity with various provisions of the Act. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2017 and 2016 are presented below (dollars in thousands):
Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carryforwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse. As of December 31, 2017, the valuation allowance increased by $58.3 million to $75.5 million. The increase in the valuation allowance relates to the impact of the Company's Bankruptcy Petition and corresponding changes in judgment regarding the Company's ability to recover its federal and state net operating loss carryforwards and certain other tax attributes. Approximately $43.9 million of the increase in valuation allowance relates to the establishment of a full valuation on federal loss carryforwards and approximately $14.4 million relates to certain state net operating loss carryforwards which the Company does not believe are more likely than not to be realized as a result of the expected expiration of these attributes prior to utilization. As of December 31, 2016, the Company maintained a valuation allowance of $17.2 million. The changes in the valuation allowance for 2016 consisted of a decrease of approximately $0.2 million related to state rate changes, an increase of $0.8 million related to the Company's estimates of its inability to recover certain state net operating losses and a decrease of $0.6 million related to the expected expiration of certain state net operating losses. At December 31, 2017, Company has federal net operating loss carryforwards, which are available to offset future taxable income, of approximately $232.0 million, and which will expire in the years 2030 through 2032. At December 31, 2017 the Company has state net operating loss carryforwards available to offset future income of approximately $1.1 billion which, if not utilized, will expire 2018 through 2037. During the first quarter 2017 the Company adopted ASU 2016-09 and recorded an additional deferred tax asset for approximately $1.5 million of net operating loss carryforwards that were previously unrecognized, related to windfall tax benefits associated with the Company's stock based compensation plan. The recognition of this deferred tax asset of approximately $0.6 million was recorded through accumulated deficit. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. For interest and penalties, the Company recorded income tax benefit of $1.8 million and $2.9 million for the years ended December 31, 2017 and 2016, respectively. The total interest and penalty accrued was $0.3 million and $2.1 million as of December 31, 2017 and 2016, respectively. The $1.8 million overall decrease in accrued interest and penalties during the year ended December 31, 2017 is a result of increases in accruals for interest and penalties on prior year positions of $0.3 million and reductions to interest and penalty accruals of $2.1 million related to the reversal of positions associated with the expiration of certain statutes of limitations and liabilities no longer deemed payable. The total unrecognized tax benefits and accrued interest and penalties at December 31, 2017 was $8.9 million. Of this total, $8.1 million represents the unrecognized tax benefits and accrued interest and penalties that, if recognized, would favorably affect the effective income tax rate in future periods. Of the $8.9 million total unrecognized tax benefits and accrued interest and penalties, $0.4 million relates to items which are expected to change significantly within the next 12 months. Substantially all federal, state, and local income tax returns have been closed for the tax years through 2013; however, the various tax jurisdictions may adjust the Company's net operating loss carryforwards. The following table reconciles unrecognized tax benefits during the relevant years (in thousands):
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Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share | Per Share For all periods presented, the Company has disclosed basic and diluted loss per common share utilizing the two-class method. In accordance with ASC Topic 260, "Earnings per Share," the presentation of basic and diluted EPS is required only for common stock and not for participating securities. Non-vested restricted shares of Class A common stock are considered participating securities for purposes of calculating basic weighted-average common shares outstanding in all periods. In addition, Company Warrants are accounted for as participating securities, as holders of such Warrants, in accordance with and subject to the terms and conditions of the Warrant Agreement, are entitled to receive ratable distributions of the Company's earnings concurrently with such distributions made to the holders of Class A common stock. Basic loss per common share is calculated by dividing net loss available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. In accordance with the terms of the Company's certificate of incorporation, the Company allocates undistributed net loss, after any allocation for preferred stock dividends, between each class of common stock on an equal basis per share. In accordance with the two-class method, the non-vested restricted shares of Class A common stock and Company Warrants are excluded from the computation of basic EPS. Diluted loss per share is computed in the same manner as basic loss per share after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes stock options and certain warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net loss is allocated to common stock to the extent that each security may share in earnings, as if all of the loss for the period had been distributed. Loss is allocated to each class of common stock equally per share. The following table sets forth the computation of basic and diluted loss per common share for the years ended December 31, 2017, 2016 and 2015 (amounts in thousands, except per share data):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has non-cancelable operating leases, primarily for land, tower space, office-space, certain office equipment and vehicles. The operating leases generally contain renewal options for periods ranging from one to ten years and require the Company to pay all executory costs such as maintenance and insurance. Rental expense for operating leases was approximately $23.6 million, $25.2 million, and $27.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. Future minimum payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year), future minimum sublease income to be received and a lease commitment under a sale leaseback agreement as of December 31, 2017 are as follows (in thousands):
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Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Future Commitments The radio broadcast industry’s principal ratings service is Nielsen Audio ("Nielsen"), which publishes listener surveys for domestic radio markets. Certain of the Company’s subsidiaries have agreements with Nielsen under which they receive programming ratings information. The remaining aggregate obligation under the agreements with Nielsen as of December 31, 2017 was approximately $200.3 million and is expected to be paid in accordance with the agreements through December 2021. The Company engages Katz Media Group, Inc. ("Katz") as its national advertising sales agent. The national advertising agency contract with Katz contains termination provisions that, if exercised by the Company during the term of the contract, would obligate the Company to pay a termination fee to Katz, based upon a formula set forth in the contract. The Company is committed under various contractual agreements to pay for broadcast rights that include sports and news services and to pay for talent, executives, research, weather information and other services. The Company from time to time enters into radio network contractual obligations to guarantee a minimum amount of revenue share to contractual counterparties on certain programming in future years. Generally, these guarantees are subject to decreases dependent on clearance targets achieved. On January 3, 2014 (the "Commencement Date”), Merlin Media, LLC (“Merlin”) and the Company entered into an agreement (the "LMA Agreement") under which the Company was responsible for programming two FM radio stations in Chicago, Illinois, for monthly fees payable to Merlin of approximately $0.3 million, $0.4 million, $0.5 million and $0.6 million in the first, second, third and fourth years following the Commencement Date, respectively, in exchange for the Company retaining the operating profits from these radio stations. The Company and Merlin entered into a separate agreement (the "Put and Call Agreement") pursuant to which the Company had the right to purchase these two FM radio stations until October 5, 2017 for a specified amount of cash equal to the greater of (i) $70.0 million minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date or the date that is four years after the Commencement Date, or (ii) $50.0 million. Conversely, Merlin had the right to require the Company to purchase these two FM radio stations at any time during a ten business day period commencing October 6, 2017 for $71.0 million, minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date and January 3, 2018. On February 1, 2018, the Company and Merlin agreed to terminate the Put and Call Agreement and amended the LMA Agreement. The Company continues to operate one of the FM stations under the amended LMA Agreement. The Company determined through its review of the requirements of ASC Topic 810, Consolidation ("ASC 810") that the stations are a variable interest entity (“VIE”) for which it is not the primary beneficiary, therefore consolidation is not required. On April 1, 2014, the Company initiated an exit plan for an office lease as part of a restructuring in connection with the acquisition of Westwood One (the "Exit Plan"), which included charges related to terminated contract costs. As of December 31, 2017, liabilities related to the Exit Plan of $1.2 million are included in Liabilities Subject to Compromise in the Consolidated Balance Sheet. The Company does not anticipate any additional meaningful future charges in connection with the Exit Plan other than those for which the Company has already accrued. Legal Proceedings On March 1, 2011, the Company and certain of our subsidiaries were named as defendants along with other radio companies, including Beasley Broadcast Group, Inc., CBS Radio, Inc., Entercom Communications, Greater Media, Inc. and Townsquare Media, LLC in a patent infringement suit. The case, Mission Abstract Data L.L.C., d/b/a Digimedia ("Plaintiff") v. Beasley Broadcast Group, Inc., et. al., Civil Action Case No: 1:11-mc-00176-LPS, U.S. District Court for the District of Delaware, alleged that the defendants have infringed on two of plaintiff’s patents entitled “Selection and Retrieval of Music from a Digital Database.” The Complaint sought unspecified damages. The Court stayed the case on November 14, 2011 pending reexamination of the patents-in-suit before the U.S. Patent Office. On June 6, 2012, Plaintiff filed a motion to lift the stay. On March 25, 2013, the Court entered an order denying Plaintiff’s motion to lift the stay. However, the Court ordered that “the stay shall be lifted upon the issuance of the Notice of Intent to Issue Reexamination Certifications (‘NIRC’)” for the two patents-in-suit. By operation of the Court’s Order, the stay was lifted on July 8, 2013, when the final NIRC was issued for the two patents-in-suit. Notwithstanding the foregoing, on November 27, 2017, the Plaintiff and defendants filed a stipulation of dismissal of the action and the action was dismissed with prejudice by court order in early December, 2017, thereby concluding the case. In August 2015, the Company was named as a defendant in two separate putative class action lawsuits relating to its use and public performance of certain sound recordings fixed prior to February 15, 1972 (the "Pre-1972 Recordings"). The first suit, ABS Entertainment, Inc., et. al. v, Cumulus Media Inc., was filed in the United States District Court for the Central District of California and alleged, among other things, copyright infringement under California state law, common law conversion, misappropriation and unfair business practices. On December 11, 2015, this suit was dismissed without prejudice. The second suit, ABS Entertainment, Inc., v. Cumulus Media Inc., was filed in the United States District Court for the Southern District of New York and claimed, among other things, common law copyright infringement and unfair competition. The New York lawsuit was stayed pending an appeal before the Second Circuit involving unrelated third parties over whether the owner of a Pre-1972 Recording holds an exclusive right to publicly perform that recording under New York common law. On December 20, 2016, the New York Court of Appeals held that New York common law does not recognize a right of public performance for owners of pre-1972 Recordings. As a result of that case (to which Cumulus Media, Inc., was not a party) the New York case against Cumulus Media, Inc., was voluntarily dismissed by the plaintiffs on April 3, 2017. The question of whether public performance rights exist for Pre-1972 recordings under state laws is still being litigated in the Ninth and Eleventh Circuits as a result of cases filed in California and Florida. Cumulus is not a party to those cases, and the Company is not yet able to determine what effect those proceedings will have, if any, on its financial position, results of operations or cash flows. In the first quarter of 2016, CBS Radio Inc. ("CBS") filed a demand for arbitration against certain of the Company's subsidiaries. This action alleged that certain of its subsidiaries breached the terms of one or more contracts with CBS relating to sports network radio programming and content. As previously disclosed, in the third quarter of 2016, the Company settled these claims in exchange for a one-time payment of $13.3 million. This payment was classified as a content cost in the accompanying Consolidated Statement of Operations for the year ended December 31, 2016. The Company currently is, and expects that from time to time in the future it will be, party to, or a defendant in, various other claims or lawsuits that are generally incidental to its business. The Company expects that it will vigorously contest any such claims or lawsuits and believes that the ultimate resolution of any such known claim or lawsuit will not have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. |
Quarterly Results (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The following table presents the Company’s selected unaudited quarterly results for each of the quarters during 2017 and 2016 (dollars in thousands, except per share data):
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Supplemental Condensed Consolidating Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidating Financial Information | Supplemental Condensed Consolidating Financial Information At December 31, 2017, Cumulus (the "Parent Guarantor") and certain of its 100% owned subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) provided guarantees of the obligations of Cumulus Holdings (the "Subsidiary Issuer") under the 7.75% Senior Notes. These guarantees are full and unconditional (subject to customary release provisions) as well as joint and several. Certain of the Subsidiary Guarantors may be subject to restrictions on their respective ability to distribute earnings to Cumulus Holdings or the Parent Guarantor. Not all of the subsidiaries of Cumulus and Cumulus Holdings guarantee the 7.75% Senior Notes (such non-guaranteeing subsidiaries, collectively, the “Subsidiary Non-guarantors”). Investments in consolidated subsidiaries are held primarily by the Parent Guarantor in the net assets of its subsidiaries and have been presented using the equity method of accounting. The “Eliminations” entries in the following tables primarily eliminate investments in subsidiaries and intercompany balances and transactions. The columnar presentations in the following tables are not consistent with the Company’s business groups; accordingly, this basis of presentation is not intended to present the Company’s financial condition, results of operations or cash flows on a consolidated basis. Revision to Prior Period Financial Statements During the first quarter of 2017, the Company determined that it did not properly classify the investment in consolidated subsidiaries balance residing at the Parent Guarantor as a liability at December 31, 2016. The Company should have presented the investment in consolidated subsidiary balance as a liability as the balance was negative at December 31, 2016. In the following disclosure, a separate line item entitled “Accumulated losses in consolidated subsidiaries” is presented in the Consolidated Balance Sheet to correct this misclassification. This presentation misclassification was not material to the previously issued financial statements. In accordance with ASC 250-10, SEC Staff Accounting Bulletin No. 99, Materiality, the Company assessed the materiality of the errors and concluded that the errors were not material to any of the Company’s previously issued financial statements. As permitted by ASC 250-10, SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company has presented revised financial information as of December 31, 2016. The following tables present (i) Condensed Consolidating Statements of Operations for the years ended December 31, 2017, 2016 and 2015, (ii) Condensed Consolidating Balance Sheets as of December 31, 2017 and 2016, and (iii) Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2017, 2016, and 2015 of each of the Parent Guarantor, Cumulus Holdings, the Subsidiary Guarantors, and the Subsidiary Non-guarantors. CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2017 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Debtor-In-Possession) Year Ended December 31, 2015 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2017 (Dollars in thousands, except for share and per share data)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (Dollars in thousands, except for share and per share data)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 (Dollars in thousands)
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Condensed Combined Debtor-In-Possession Financial Information |
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Condensed Combined Debtor-In-Possession Financial Information | 18. Condensed Combined Debtor-In-Possession Financial Information The financial statements below represent the condensed combined financial statements of the Debtors. Effective January 1, 2017, the Company’s Non-Filing Entities, which are comprised of the Company's FCC license holding entities, are accounted for as non-consolidated subsidiaries in these financial statements and, as such, their net loss is included as “Equity in earnings of non-filing entities, net of tax” in the Debtors’ Statement of Operations and their net assets are included as “Investment in non-filing entities” in the Debtors’ Statement of Financial Position. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements. Debtors' Balance Sheet (Dollars in thousands, expect for share data)
Debtors' Statement of Operations (Dollars in thousands)
Debtors' Statement of Cash Flows (Dollars in thousands)
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Segment Data |
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Segment Data | Segment Data The Company operates in two reportable segments, for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker, the Radio Station Group and Westwood One. Radio Station Group revenue is derived primarily from the sale of broadcasting time to local, regional, and national advertisers. Westwood One revenue is generated primarily through network advertising. Corporate includes overall executive, administrative and support functions for both of the Company's reportable segments, including programming, finance, legal, human resources and information technology functions. The Company presents segment adjusted EBITDA ("Adjusted EBITDA") as this is the financial metric by which management and the chief operating decision maker allocate resources of the Company and analyze the performance of the Company’s reportable segments. Management also uses this measure to determine the contribution of the Company's core operations to the funding of its corporate resources utilized to manage operations and non-operating expenses including debt service and acquisitions. In addition, Adjusted EBITDA, excluding the impact of local marketing agreement fees, is a key metric for purposes of calculating and determining compliance with certain covenants contained in the Company's Credit Agreement. The Company excludes from Adjusted EBITDA items not related to core operations and those that are non-cash including: depreciation, amortization, stock-based compensation expense, gain or loss on the exchange or sale of any assets or stations, early extinguishment of debt, local marketing agreement fees, expenses relating to acquisitions, restructuring costs, reorganization items and non-cash impairments of assets. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Adjusted EBITDA may be defined or calculated differently by other companies, and comparability may be limited. The Company’s financial data by segment is presented in the tables below:
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS |
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | HEDULE II CUMULUS MEDIA INC. FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS
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Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Description of Business | Description of Business Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reportable Segments | Reportable Segments The Company operates in two reportable segments, for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker, the Radio Station Group and Westwood One. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including significant estimates related to revenue recognition, bad debts, intangible assets, income taxes, stock-based compensation, contingencies, litigation, valuation assumptions for impairment analysis, certain expense accruals and, if applicable, purchase price allocation. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, and which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and certain items that are excluded from net income (loss) and recorded as a separate component of stockholders' equity (deficit). During the years ended December 31, 2017 and 2016, the Company had no items of other comprehensive income (loss) and, therefore, comprehensive income (loss) does not differ from reported net income (loss). |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considered all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Accounts Receivable, Allowance for Doubtful Accounts and Concentration of Credit Risk | Accounts Receivable, Allowance for Doubtful Accounts and Concentration of Credit Risk Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determined the allowance based on several factors, including the length of time receivables are past due, trends and current economic factors. All balances are reviewed and evaluated quarterly on a consolidated basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. In the opinion of management, credit risk with respect to accounts receivable is limited as a result of the large number of customers and the geographic diversification of the Company’s customer base. The Company performs credit evaluations of its customers as needed and believes that adequate allowances for any uncollectible accounts receivable are maintained. |
Assets Held for Sale | Assets Held for Sale During the year ended December 31, 2015, the Company entered into an agreement to sell certain land in the Company's Washington, DC market to a third party. The closing of the transaction is subject to various conditions and approvals, which remain pending. The identified asset was classified as held for sale in the accompanying Consolidated Balance Sheet at December 31, 2016. The estimated fair value of the land to be disposed of is in excess of its carrying value. Under the Bankruptcy Code, the final disposition of assets via a sales agreement cannot occur without Bankruptcy Court approval. As a result, as of December 31, 2017, the asset no longer met the definition of held for sale under Accounting Standards Codification ("ASC") Topic 360, Property and equipment and as of December 31, 2017, the asset was reclassified on the Consolidated Balance Sheet as Property and Equipment. |
Insurance Recoveries | Insurance Recoveries The Company recorded $12.4 million in other income (expense), net in the Consolidated Statement of Operations for the year ended December 31, 2015. This was primarily related to the receipt of $14.6 million of insurance proceeds from a business interruption claim arising from Hurricane Katrina in 2005. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Property and equipment acquired in business combinations accounted for under the purchase method of accounting are recorded at their estimated fair values on the date of acquisition. Equipment held under capital leases is stated at the present value of minimum future lease payments. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets. Equipment held under capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining term of the lease. Depreciation of construction in progress is not recorded until the assets are placed into service. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company’s intangible assets are comprised of broadcast licenses, certain other intangible assets and goodwill. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed in a business combination. Intangible assets and goodwill acquired in a business combination and determined to have an indefinite useful life, which include the Company’s broadcast licenses, are not amortized, but instead tested for impairment at least annually, or if a triggering event occurs. Intangible assets with definite useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In determining that the Company’s broadcast licenses qualified as indefinite lived intangibles, management considered a variety of factors including the Federal Communications Commission’s (“FCC”) historical record of renewing broadcast licenses, the cost to the Company of renewing such licenses, the relative stability and predictability of the radio industry and the relatively low level of capital investment required to maintain the physical plant of a radio station. The Company's evaluation of the recoverability of its indefinite-lived assets, which include FCC licenses and goodwill, is based on certain judgments and estimates. Future events may impact these judgments and estimates. If events or changes in circumstances were to indicate that an asset’s carrying value is not recoverable, a write-down of the asset would be recorded through a charge to operations. |
Investments | Investments The Company follows Accounting Standards Codification (“ASC”) Topic 325-20, Cost Method Investments (“ASC 325-20”) to account for its ownership interest in noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred. |
Debt Issuance Costs | Debt Issuance Costs The costs related to the issuance of debt are capitalized and amortized to interest expense over the life of the related debt using the effective interest method. |
Revenue Recognition | Revenue Recognition Revenue is derived primarily from the sale of commercial airtime to local and national advertisers. Revenue is recognized as commercials are broadcast. Revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees by the advertising agencies, usually at a rate of 15.0%, which is the industry standard. In those instances in which the Company functions as the principal in the transaction, the revenue and associated operating costs are presented on a gross basis. In those instances where the Company functions as an agent or sales representative, the effective commission is presented as revenue with no corresponding operating expenses. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Local Marketing Agreements | Local Marketing Agreements A number of radio stations, including certain of our stations, have entered into LMAs. In a typical LMA, the licensee of a station makes available, for a fee and reimbursement of its expenses, airtime on its station to a party which supplies programming to be broadcast during that airtime, and collects revenues from advertising aired during such programming. LMAs are subject to compliance with the antitrust laws and the Communications Laws, including the requirement that the licensee must maintain independent control over the station and, in particular, its personnel, programming, and finances. |
Stock-based Compensation Expense | Stock-based Compensation Expense Stock-based compensation expense recognized under ASC Topic 718, Compensation — Share-Based Payment (“ASC 718”), for the years ended December 31, 2017, 2016 and 2015, was $1.6 million, $2.9 million, and $21.0 million, respectively. Upon adopting ASC 718 for awards with service conditions, an election was made to recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award. For stock options with service conditions only, the Company utilizes the Black-Scholes option pricing model to estimate the fair value of options issued. The fair value of stock options is determined by the Company’s stock price, historical stock price volatility over the expected term of the awards, risk-free interest rates and expected dividends. If other assumptions are used, the results could differ. For restricted stock awards with service conditions only, the Company utilizes the intrinsic value method. For restricted stock awards with performance conditions, the Company evaluates the probability of vesting of the awards in each reporting period and adjusts compensation cost based on this assessment. |
Trade Transactions | Trade Transactions The Company provides commercial airtime in exchange for goods and services used principally for promotional, sales, programming and other business activities. An asset and liability is recorded at the fair value of the goods or services received. Trade revenue is recorded and the liability is relieved when commercials are broadcast and trade expense is recorded and the asset relieved when goods or services are consumed. Trade valuation is based upon management’s estimate of the fair value of the products, supplies and services received. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for deferred income taxes. Except for goodwill, deferred income taxes are recognized for all temporary differences between the tax and financial reporting bases of our assets and liabilities based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The Act, among other changes, reduces the US federal corporate tax rate from 35% to 21% for tax years after 2017. At December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the Act; however, in certain cases, as described more fully in Note 12 “Income Taxes”, it has made a reasonable estimate of the effects on its existing deferred tax balances. A valuation allowance is recorded against a deferred tax asset to measure its net realizable value when it is not more likely than not that the benefits of its recovery will be recognized. The Company continually reviews the adequacy of our valuation allowance on our deferred tax assets and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740, Income Taxes ("ASC 740"). Any adjustment to the deferred tax asset valuation allowance is recorded in the Consolidated Statement of Operations of the period that the adjustment is determined to be required. See Note 12, “Income Taxes” for further discussion. |
Earnings per Share | Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding. The Company allocates undistributed net income (loss) from continuing operations between each class of common stock on an equal basis after any allocations for preferred stock dividends in accordance with the terms of the Company’s third amended and restated certificate of incorporation, as amended (the “Third Amended and Restated Charter”). Non-vested restricted shares of Class A common stock and Company Warrants (defined below) are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company recorded net income. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming the issuance of common stock for all potentially dilutive equivalent shares, which includes stock options and certain other outstanding warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income is allocated to common stock and participating securities to the extent that each security may share in earnings, as if all of the earnings for the period had been distributed. Earnings are allocated to each participating security and common share equally, after deducting dividends declared or accreted on preferred stock. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying values of cash equivalents, restricted cash, accounts receivables, accounts payable, trade payables and receivables and accrued expenses approximate fair value because of the short term to maturity of these instruments (See Note 7, "Fair Value Measurements"). |
Accounting for National Advertising Agency Contract | Accounting for National Advertising Agency Contract The Company has engaged Katz Media Group, Inc. (“Katz”) as its national advertising sales agent. The Company’s contract with Katz has several economic elements that principally reduce the overall expected commission rate below the stated base rate. The Company estimates the overall expected commission rate over the entire contract period and applies that rate to commissionable revenue throughout the contract period with the goal of estimating and recording a stable commission rate over the life of the contract. The potential commission adjustments are estimated and combined in the Consolidated Balance Sheets with the contractual termination liability. That liability is accreted to commission expense to effectuate the stable commission rate over the term of the contract. Over the term of the contract with Katz, management updates its assessment of the effective commission expense attributable to national sales in an effort to record a consistent commission rate in each period. The Company’s accounting for and calculation of commission expense to be realized over the life of the Katz contract requires management to make estimates and judgments that affect reported amounts of commission expense in each period. Actual results may differ from management’s estimates. |
Variable Interest Entities | Variable Interest Entities The Company accounted for entities qualifying as variable interest entities (“VIEs”) in accordance with ASC Topic 810, Consolidation (“ASC 810”). VIEs are required to be consolidated by the primary beneficiary. The primary beneficiary is the entity that holds the majority of the beneficial interests in the VIE. A VIE is an entity for which the primary beneficiary’s interest in the entity can change with changes in factors other than the amount of investment in the entity. From time to time, the Company enters into an LMA in connection with pending acquisitions or dispositions of radio stations and the requirements of ASC 810 may apply, depending on the facts and circumstances related to each transaction. |
Adoption of New Accounting Standards and Recent Accounting Standards Updates | Adoption of New Accounting Standards ASU 2016-09 - Compensation - Stock Compensation ("ASU 2016-09"). In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, which provides guidance for employee stock-based payments. This update removes the requirement that reporting entities present tax benefits as excess cash flows from financing activities and cash flows from operating activities. As a result of this amendment, cash flows related to excess tax benefits will be classified only in operating activities. The Company adopted ASU 2016-09 effective January 1, 2017. As a result of adoption, in the first quarter of 2017, the Company recorded an adjustment to accumulated deficit of approximately $0.6 million to recognize net operating loss carryforwards attributable to excess tax benefits on stock compensation that had not been previously recognized in additional paid in capital. The Company is continuing its practice of estimating forfeitures and recording cash paid for withholding taxes as a financing activity. ASU 2017-04 - Intangibles - Goodwill and Other ("ASU 2017-04"). In January 2017, the FASB issued ASU 2017-04 to simplify the accounting for goodwill impairment. The update eliminates the requirement to perform Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Upon effectiveness of this update, a goodwill impairment is the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains substantially unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The Company early adopted ASU 2017-04 effective January 1, 2017. There was no impact on the Company's financial statements as a result of the adoption of this standard. Recent Accounting Standards Updates ASU 2014-09 and related updates - Revenue from Contracts with Customers ("ASU 2014-09"). In May 2014, the FASB issued ASU 2014-09 which outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued ASU 2015-14 - Deferral of the Effective Date ("ASU 2015-14"), which delayed the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended, is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 - Principal versus Agent Considerations ("ASU 2016-08") which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10 - Identifying Performance Obligations and Licensing ("ASU 2016-10") which amends the revenue recognition guidance on accounting for licenses of intellectual property and identifying performance obligations as well as clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 - Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12") which provides clarifying guidance in certain narrow areas such as an assessment of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition as well as adds certain practical expedients. In December 2016, the FASB issued ASU 2016-20 - Technical Corrections and Improvements ("ASU 2016-20") which provides technical corrections and improvements to Topic 606. In March 2017, the FASB issued ASU 2017-05 - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets ("ASU 2017-05") which clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of non-financial assets, including partial sales of real estate. In May 2017, the FASB issued ASU 2017-10 - Determining the Customer of the Operation Services ("ASU 2017-10") which clarifies the diversity in practice in how an operating entity determines the customer of the operation services for transactions within the scope of ASC 853, Service Concession Arrangements, by clarifying that the grantor is the customer of the operation services in all cases for those arrangements. The amendments also allow for a more consistent application of other aspects of the revenue guidance, which are affected by this customer determination. The amendments in ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-05 and ASU 2017-10 may be applied either retrospectively to each prior period presented or retrospectively with the cumulative effect of initially applying such updates at the date of initial application. The Company created a revenue recognition implementation team which has overseen the planning, testing and implementation of ASC 606. The responsibilities of this team include developing an appropriate testing methodology, performing the testing of contracts and evaluating the impact of the new revenue recognition standard on the Company's financial statements. The Company will adopt the new standard using a modified retrospective approach effective January 1, 2018. The most significant impact of adopting the new standard on the Company's financial statements will primarily relate to a change in the recognition of costs incurred to obtain a contract. Beginning on January 1, 2018, sales commissions directly related to obtaining new customers will be capitalized at the onset of a contract and amortized over an estimated customer life. Under the Company's accounting policy, prior to January 1, 2018, all such costs were expensed when the relevant advertisements are aired. The change in timing of the recognition of sales commission costs is not expected to have a material impact on the consolidated financial statements, including retained earnings or disclosures. Also, the accounting for the estimate of variable consideration is not materially different compared to the Company's current practice. The new standard is expected to impact the Company's internal control environment, including the Company's financial statement disclosure controls, business process controls, new systems and processes, and enhancements to existing systems and processes. ASU 2016-01 - Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). In January 2016, the FASB issued ASU 2016-01 which enhances the reporting model for financial instruments including aspects of recognition, measurement, presentation and disclosure. The new guidance revises the accounting requirements related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The update also changes certain disclosure requirements associated with the fair value of financial instruments. These changes will require an entity to measure, at fair value, investments in equity securities and other ownership interests in an entity - including investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method - and recognize the changes in fair value within net income. ASU 2016-01 will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. In February 2018, the FASB issued ASU 2018-03 - Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2018-03") which provides an option for a company to "un-elect" the measurement alternative and elect to account for the investment at fair value through current earnings. However, once a company makes this election for a particular investment, it must apply the fair value through current earnings model to all identical investments and/or similar investments from the same issuer. Further, a company cannot elect the measurement alternative for future purchases of identical or similar investments of the same issuer. Early adoption of ASU 2016-01 is not permitted, except for certain amendments within the ASU. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2016-02 - Leases ("ASU 2016-02"). In February 2016, the FASB issued ASU 2016-02 which provides updated guidance for the accounting for leases. This update requires lessees to recognize assets and liabilities for the rights and obligations created by leases with a term longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. A modified retrospective transition method is required, with the option to elect certain practical expedients. Early adoption is permitted. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements and plans to adopt the new standard effective January 1, 2019. ASU 2016-15 - Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). In August 2016, the FASB issued ASU 2016-15 which provides guidance for several new and/or revised disclosures pertaining to the classification of certain cash receipts and cash payments on the statement of cash flows, including contingent consideration payments made after a business acquisition. ASU 2016-15 will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company plans to adopt this standard effective January 1, 2018 and does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2016-16. - Intra-Entity Transfers of Assets Other than Inventory ("ASU 2016-16"). In October 2016, the FASB issued ASU 2016-16. The amendments in the ASU provide guidance for the accounting for the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs between entities in different tax jurisdictions. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operation or disclosures. ASU 2016-18 - Restricted Cash ("ASU 2016-18"). In November 2016, the FASB issued ASU 2016-18 which provides guidance for the accounting for the disclosure of restricted cash on the statement of cash flows. ASU 2016-18 will be effective for fiscal years beginning after December 15, 2017, and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. As of December 31, 2017 and December 31, 2016, the Company had approximately $9.0 million and $8.0 million in restricted cash, respectively, on its Consolidated Balance Sheets. Upon adoption of ASU 2016-18, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of the period, respectively, in the Company's Consolidated Balance Sheets for all periods presented; additionally, separate line items showing changes in restricted cash balances will be eliminated from its Consolidated Statement of Cash Flows. The Company plans to adopt this standard effective January 1, 2018 and does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2017-01 - Clarifying the Definition of a Business ("ASU 2017-01"). In January 2017, the FASB issued guidance that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new standard is effective for fiscal years, and interim periods within fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company plans to adopt this standard effective January 1, 2018 and does not expect adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. ASU 2017-09 - Scope of Modification Accounting ("ASU 2017-09"). In May 2017, the FASB issued an update to guidance on Topic 718, Compensation—Stock Compensation that clarifies when changes to the terms or conditions of a share-based award must be accounted for as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 will be effective for all entities for annual periods, and interim periods within annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company plans to adopt this standard effective January 1, 2018 and does not expect the adoption of this guidance to have a material impact on its financial condition, results of operations or disclosures. |
Fair Value Measurements | The three levels of the fair value hierarchy to be applied when determining fair value of financial instruments are described below: Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property and Equipment | Property and equipment consisted of the following as of December 31, 2017 and 2016 (dollars in thousands):
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Intangible Assets and Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Goodwill | The following tables present goodwill balances and accumulated impairment losses on a segment and consolidated basis as of December 31, 2016 and December 31, 2017 (dollars in thousands): Radio Station Group
Westwood One
Consolidated
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Schedule of Changes in Intangible Assets Other Than Goodwill | The following table presents intangible asset balances, changes therein and dispositions and amortization thereof during the years ended December 31, 2016 and December 31, 2017. (dollars in thousands):
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Estimated Future Amortization Expense | As of December 31, 2017, estimated future amortization expense related to the Company's definite-lived intangible assets was as follows (dollars in thousands):
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Schedule of Goodwill |
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Accounts Payable and Accrued Expenses (Tables) |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following as of December 31, 2017 and 2016 (dollars in thousands):
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-term Debt | The Company’s long-term debt consisted of the following at December 31, 2017 and 2016 (dollars in thousands):
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Future Maturities of Long-Term Debt | Future maturities of long-term debt (dollars in thousands):
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Fair Value Measurements (Tables) |
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Schedule of Gross Amounts and Fair Value of Company's First Lien Term Loan, Second Lien Term Loan, Revolving Credit Facility and 7.75% Senior Notes | The following table shows the gross amount and fair value of the Company’s Term Loan and 7.75% Senior Notes (dollars in thousands):
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Liabilities Subject to Compromise (Tables) |
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Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liabilities Subject to Compromise | Liabilities Subject to Compromise at December 31, 2017 consisted of the following (in thousands):
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Reorganization Items, net (Tables) |
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Reorganizations [Abstract] | |||||||||||||||||||||||||
Schedule of Reorganization Items | Reorganization items incurred as a result of the chapter 11 cases are presented separately in the accompanying statements of operations for the year ended December 31, 2017 and were as follows (in thousands):
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Stock-Based Compensation Expense (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Equity Award Activity | The following tables summarize the Company’s equity award activity for the year ended December 31, 2017:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income Tax Expense (Benefit) | Income tax for the years ended December 31, 2017, 2016 and 2015 consisted of the following (dollars in thousands):
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Total Income Tax Expense (Benefit) Differed From Amount Computed by Applying Federal Statutory Tax Rate | Total income tax differed from the amount computed by applying the federal statutory tax rate of 35.0% for the years ended December 31, 2017, 2016 and 2015 as a result of the following (dollars in thousands):
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Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2017 and 2016 are presented below (dollars in thousands):
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Schedule of Unrecognized Tax Benefits Roll Forward | The following table reconciles unrecognized tax benefits during the relevant years (in thousands):
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Loss Per Share (Tables) |
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Schedule of Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted loss per common share for the years ended December 31, 2017, 2016 and 2015 (amounts in thousands, except per share data):
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Leases (Tables) |
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Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year), future minimum sublease income to be received and a lease commitment under a sale leaseback agreement as of December 31, 2017 are as follows (in thousands):
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Quarterly Results (Unaudited) (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results | The following table presents the Company’s selected unaudited quarterly results for each of the quarters during 2017 and 2016 (dollars in thousands, except per share data):
|
Supplemental Condensed Consolidating Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2017 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Debtor-In-Possession) Year Ended December 31, 2015 (Dollars in thousands)
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Condensed Consolidating Balance Sheets | CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2017 (Dollars in thousands, except for share and per share data)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (Dollars in thousands, except for share and per share data)
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Condensed Consolidating Statements of Cash Flows | CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 (Dollars in thousands)
CUMULUS MEDIA INC. (Debtor-In-Possession) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 (Dollars in thousands)
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Condensed Combined Debtor-In-Possession Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unconsolidated Subsidiaries, Debtor In Possession [Table Text Block] | Debtors' Balance Sheet (Dollars in thousands, expect for share data)
Debtors' Statement of Operations (Dollars in thousands)
Debtors' Statement of Cash Flows (Dollars in thousands)
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Segment Data (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The Company’s financial data by segment is presented in the tables below:
|
Restricted Cash (Narrative) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 8,999 | $ 8,025 |
Property and Equipment (Narrative) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 28.7 | $ 31.1 | $ 33.0 |
Intangible Assets and Goodwill (Changes in Goodwill) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 1,582,806 | $ 1,582,806 |
Accumulated impairment losses | (1,447,592) | (1,447,592) |
Total | 135,214 | 135,214 |
Radio Station Group | ||
Goodwill [Line Items] | ||
Goodwill | 1,278,526 | 1,278,526 |
Accumulated impairment losses | (1,278,526) | (1,278,526) |
Total | 0 | 0 |
Westwood One | ||
Goodwill [Line Items] | ||
Goodwill | 304,280 | 304,280 |
Accumulated impairment losses | (169,066) | (169,066) |
Total | $ 135,214 | $ 135,214 |
Intangible Assets and Goodwill (Changes in Intangible Assets Other Than Goodwill) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Indefinite-Lived Intangible Assets | |||
Indefinite-Lived Intangible Assets, Beginning Balance | $ 1,540,183 | $ 1,578,066 | |
Impairment | (335,909) | (35,000) | |
Disposition | (465) | (2,883) | |
Amortization | 0 | 0 | |
Indefinite-Lived Intangible Assets, Ending Balance | 1,203,809 | 1,540,183 | $ 1,578,066 |
Definite-Lived Intangible Assets | |||
Definite-Lived Intangible Assets, Beginning Balance | 116,499 | 174,530 | |
Impairment | 0 | (1,816) | |
Disposition | 0 | 0 | |
Amortization | (33,505) | (56,215) | (69,100) |
Definite-Lived Intangible Assets, Ending Balance | 82,994 | 116,499 | 174,530 |
Intangible Assets, Net | |||
Intangible Assets Total, Beginning Balance | 1,656,682 | 1,752,596 | |
Impairment | (335,909) | (36,816) | |
Disposition | (465) | (2,883) | |
Amortization | (33,505) | (56,215) | (69,100) |
Intangible Assets Total, Ending Balance | $ 1,286,803 | $ 1,656,682 | $ 1,752,596 |
Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2018 | $ 18,201 | ||
2019 | 17,257 | ||
2020 | 17,197 | ||
2021 | 17,114 | ||
2022 | 12,843 | ||
Thereafter | 382 | ||
Total other intangibles, net | $ 82,994 | $ 116,499 | $ 174,530 |
Intangible Assets and Goodwill (Narrative) (Detail) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2017
USD ($)
segment
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Intangible Assets And Goodwill [Line Items] | ||||
Amortization expense, definite-lived | $ 33,505 | $ 56,215 | $ 69,100 | |
Number of reporting units | segment | 2 | |||
Market revenue growth rate percentage for the residual year | (1.00%) | |||
Weighted average cost of capital | 9.30% | |||
Goodwill | $ 135,214 | 135,214 | ||
Period for calculating depreciation expense using accelerated double declining balance guidelines | 5 years | |||
Westwood One | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Amortization expense, definite-lived | $ 1,800 | |||
Goodwill | $ 135,214 | 135,214 | ||
Goodwill Test 2 | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Noncash impairment charge | 568,100 | |||
Goodwill Test 2 | Reporting Unit 1 | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Goodwill | 0 | |||
FCC Licenses | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Noncash impairment charge | $ 335,900 | $ 35,000 |
Intangible Assets and Goodwill (Schedule of Goodwill) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Goodwill [Line Items] | |||
Goodwill | $ 135,214 | $ 135,214 | |
Carrying value (including goodwill) | 1,286,803 | 1,656,682 | $ 1,752,596 |
Westwood One | |||
Goodwill [Line Items] | |||
Goodwill | 135,214 | $ 135,214 | |
Carrying value (including goodwill) | $ 313,572 | ||
Percentage fair value above carrying value | 36.90% |
Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued employee costs | $ 9,528 | $ 30,887 |
Accrued third party content costs | 5,205 | 29,285 |
Accrued interest | 0 | 8,334 |
Accounts payable | 1,928 | 12,739 |
Accrued other | 19,496 | 14,996 |
his | $ 36,157 | $ 96,241 |
Long-Term Debt (Long Term Debt) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Total 7.75% Senior Notes | $ 0 | $ 603,800 |
Less: Current portion of long-term debt | 0 | 0 |
Long-term debt, net subject to compromise | 2,332,209 | 2,384,157 |
Long-term debt, net subject to compromise | (2,332,209) | 0 |
Long-term debt, net | 0 | 2,384,157 |
7.75% Senior Notes | ||
Debt Instrument [Line Items] | ||
7.75% Senior Notes | 610,000 | 610,000 |
Less: unamortized debt issuance costs | 0 | (6,200) |
Total 7.75% Senior Notes | 610,000 | 603,800 |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Term Loan | 1,722,209 | 1,810,266 |
Less: unamortized term loan discount and debt issuance costs | 0 | (29,909) |
Total term loan | $ 1,722,209 | $ 1,780,357 |
Long-Term Debt (Future Maturities of Long-Term Debt) (Detail) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2018 | $ 0 |
2019 | 610,000 |
2020 | 1,722,209 |
Long-term debt | $ 2,332,209 |
Fair Value Measurements (Gross Amounts and Fair Value of Debt) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Term Loan | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Carrying value | $ 1,810,266 | |
Term Loan | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Fair value — Level 2 | $ 1,481,100 | 1,226,455 |
7.75% Senior Notes | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Carrying value | 610,000 | |
7.75% Senior Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | ||
Fair value — Level 2 | $ 105,988 | $ 249,673 |
Fair Value Measurements (Narrative) (Detail) |
Dec. 31, 2017 |
Dec. 31, 2016 |
May 13, 2011 |
---|---|---|---|
Term Loan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading prices rate to calculate the fair value | 86.00% | 67.80% | |
7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading prices rate to calculate the fair value | 17.38% | 40.90% | |
7.75% Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Liabilities Subject to Compromise (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Reorganizations [Abstract] | ||
Deferred income taxes | $ 219,250 | |
Accrued liabilities and other liabilities | 89,897 | |
Accounts payable | 18,290 | |
Accounts payable, accrued and other liabilities | 327,437 | |
Term Loan | 1,722,209 | |
7.75% Senior Notes | 610,000 | |
Accrued interest | 27,577 | |
Long-Term Debt and accrued interest | 2,359,786 | |
Total liabilities subject to compromise | $ 2,687,223 | $ 0 |
Reorganization Items, net (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reorganizations [Abstract] | ||||
Deferred financing costs and term loan discount | $ 25,900 | $ 25,921 | ||
Professional fees | 5,682 | |||
Reorganization items, net | 31,603 | $ 0 | $ 0 | |
Accrued professional fees | $ 4,000 | $ 4,000 |
Income Taxes (Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current income tax expense | |||
State and local | $ 4,504 | $ 1,678 | $ 2,422 |
Total current income tax | 4,504 | 1,678 | 2,422 |
Deferred tax benefit | |||
Federal | (157,277) | (19,496) | (48,123) |
State and local | (10,953) | (8,336) | (139) |
Total deferred tax | (168,230) | (27,832) | (48,262) |
Net income tax benefit | $ (163,726) | $ (26,154) | $ (45,840) |
Income Taxes (Total Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Pretax loss at federal statutory rate | $ (129,602) | $ (187,906) | $ (207,317) |
State income tax, net federal | (11,729) | (1,812) | (1,385) |
Meals and entertainment | 350 | 429 | 380 |
Bankruptcy costs | 5,478 | 0 | 0 |
Change in state tax rates | 255 | (1,618) | 1,605 |
Section 162 disallowance | 1,867 | 538 | 110 |
Change in federal tax rate | (91,384) | 0 | 0 |
Impairment charges on goodwill with no tax basis | 0 | 163,630 | 153,371 |
Increase in valuation allowance | 58,254 | 32 | 190 |
Other | 2,785 | 553 | 7,206 |
Net income tax benefit | $ (163,726) | $ (26,154) | $ (45,840) |
Income Taxes (Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Noncurrent deferred tax assets: | ||
Accounts receivable | $ 948 | $ 1,422 |
Advertising relationships | 954 | 2,548 |
Other liabilities | 20,486 | 27,014 |
Debt costs | 6,987 | 0 |
Tax credits | 2,249 | 2,042 |
Net operating loss | 75,832 | 111,778 |
Noncurrent deferred tax assets | 107,456 | 144,804 |
Less: valuation allowance | (75,460) | (17,205) |
Net noncurrent deferred tax assets | 31,996 | 127,599 |
Noncurrent deferred tax liabilities: | ||
Intangible assets | 242,822 | 482,620 |
Property and equipment | 8,417 | 20,485 |
Cancellation of debt income | 0 | 12,544 |
Other | 7 | 0 |
Noncurrent deferred tax liabilities | 251,246 | 515,649 |
Net noncurrent deferred tax liabilities | 219,250 | |
Net noncurrent deferred tax liabilities | 0 | 388,050 |
Net deferred tax liabilities | $ 219,250 | $ 388,050 |
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 11,890 | $ 12,629 |
Increase for prior year positions | 447 | 275 |
Decrease for prior year positions | (3,316) | |
Lapse of statute of limitations | (434) | (1,014) |
Balance at end of period | $ 8,587 | $ 11,890 |
Leases (Narrative) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating Leased Assets [Line Items] | |||
Rental expense for operating leases | $ 23.6 | $ 25.2 | $ 27.9 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal option period | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal option period | 10 years |
Quarterly Results (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 293,861 | $ 287,240 | $ 290,531 | $ 264,030 | $ 299,541 | $ 286,136 | $ 287,193 | $ 268,530 | $ 1,135,662 | $ 1,141,400 | $ 1,168,679 |
Operating income (loss) | (321,225) | 42,931 | 47,326 | 20,522 | (568,585) | 113,017 | 36,665 | 10,114 | (210,446) | (408,789) | (478,515) |
(Loss) income before income taxes | (376,307) | 6,531 | 12,906 | (13,421) | (594,736) | 79,109 | 2,315 | (23,562) | (370,291) | (536,874) | (592,334) |
Net (loss) income | $ (206,116) | $ 1,274 | $ 5,672 | $ (7,395) | $ (543,677) | $ 46,321 | $ 1,066 | $ (14,429) | $ (206,565) | $ (510,720) | $ (546,494) |
Basic: | |||||||||||
(Loss) income per share (in USD per share) | $ (7.03) | $ 0.04 | $ 0.19 | $ (0.25) | $ (18.57) | $ 1.58 | $ 0.04 | $ (0.49) | |||
Diluted: | |||||||||||
(Loss) income per share (in USD per share) | $ (7.03) | $ 0.04 | $ 0.19 | $ (0.25) | $ (18.57) | $ 1.58 | $ 0.04 | $ (0.49) |
Supplemental Condensed Consolidating Financial Information (Narrative) (Detail) |
Dec. 31, 2017 |
Dec. 31, 2016 |
May 13, 2011 |
---|---|---|---|
Condensed Financial Statements, Captions [Line Items] | |||
Percentage ownership in subsidiaries | 100.00% | ||
7.75% Senior Notes | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Supplemental Condensed Consolidating Financial Information (Condensed Consolidating Statement of Operations) (Additional Information) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||
Stock-based compensation expense | $ 1,614 | $ 2,948 | $ 21,033 |
Supplemental Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
May 13, 2011 |
---|---|---|---|
Allowance for doubtful accounts | $ 4,322 | $ 4,691 | |
Debt issuance cost (premium) | $ 29,909 | ||
Treasury stock, shares | 2,806,187 | 2,806,187 | |
Class A Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 93,750,000 | 93,750,000 | |
Common stock, shares issued | 32,031,954 | 32,031,954 | |
Common stock, shares outstanding | 29,225,765 | 29,225,765 | |
Class C Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 80,609 | 80,609 | |
Common stock, shares issued | 80,609 | 80,609 | |
Common stock, shares outstanding | 80,609 | 80,609 | |
7.75% Senior Notes | |||
Interest rate | 7.75% | 7.75% | 7.75% |
Debt issuance costs | $ 0 | $ 6,200 |
Condensed Combined Debtor-In-Possession Financial Information (Income Statement) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Net revenue | $ 293,861 | $ 287,240 | $ 290,531 | $ 264,030 | $ 299,541 | $ 286,136 | $ 287,193 | $ 268,530 | $ 1,135,662 | $ 1,141,400 | $ 1,168,679 |
Operating expenses: | |||||||||||
Content costs | 402,978 | 427,780 | 396,426 | ||||||||
Selling, general & administrative expenses | 477,535 | 472,900 | 477,327 | ||||||||
Depreciation and amortization | 62,239 | 87,267 | 102,105 | ||||||||
LMA fees | 10,884 | 12,824 | 10,129 | ||||||||
Corporate expenses (including stock-based compensation expense of $1,614) | 59,062 | 40,148 | 73,403 | ||||||||
(Gain) loss on sale of assets or stations | (2,499) | (95,695) | 2,856 | ||||||||
Total operating expenses | 1,346,108 | 1,550,189 | 1,647,194 | ||||||||
Operating loss | (321,225) | 42,931 | 47,326 | 20,522 | (568,585) | 113,017 | 36,665 | 10,114 | (210,446) | (408,789) | (478,515) |
Non-operating expense: | |||||||||||
Reorganization items, net | (31,603) | 0 | 0 | ||||||||
Interest expense | (126,952) | (138,634) | (141,679) | ||||||||
(Loss) gain on early extinguishment of debt | (1,063) | 8,017 | 13,222 | ||||||||
Other (expense) income, net | (363) | 2,039 | 14,205 | ||||||||
Total non-operating expense, net | (159,845) | (128,085) | (113,819) | ||||||||
Loss before income taxes | (376,307) | 6,531 | 12,906 | (13,421) | (594,736) | 79,109 | 2,315 | (23,562) | (370,291) | (536,874) | (592,334) |
Income tax benefit | 163,726 | 26,154 | 45,840 | ||||||||
Net income | $ (206,116) | $ 1,274 | $ 5,672 | $ (7,395) | $ (543,677) | $ 46,321 | $ 1,066 | $ (14,429) | (206,565) | $ (510,720) | $ (546,494) |
Unconsolidated Subsidiaries | |||||||||||
Net revenue | 1,135,662 | ||||||||||
Operating expenses: | |||||||||||
Content costs | 402,978 | ||||||||||
Selling, general & administrative expenses | 475,116 | ||||||||||
Depreciation and amortization | 62,239 | ||||||||||
LMA fees | 10,884 | ||||||||||
Corporate expenses (including stock-based compensation expense of $1,614) | 59,062 | ||||||||||
(Gain) loss on sale of assets or stations | 2,499 | ||||||||||
Total operating expenses | 1,007,780 | ||||||||||
Operating loss | 127,882 | ||||||||||
Non-operating expense: | |||||||||||
Reorganization items, net | 31,603 | ||||||||||
Interest expense | 126,816 | ||||||||||
(Loss) gain on early extinguishment of debt | (1,063) | ||||||||||
Other (expense) income, net | (363) | ||||||||||
Total non-operating expense, net | (159,845) | ||||||||||
Loss before income taxes | (31,963) | ||||||||||
Income tax benefit | (66,288) | ||||||||||
Income (Loss) from Equity Method Investments | (240,890) | ||||||||||
Net income | $ (206,565) |
Condensed Combined Debtor-In-Possession Financial Information (Income Statement Additional Information) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Stock-based compensation expense | $ 1,614 | $ 2,948 | $ 21,033 |
Unconsolidated Subsidiaries | |||
Stock-based compensation expense | $ 1,614 |
Segment Data (Narrative) (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2017
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Schedule II, Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4,691 | $ 4,923 | $ 6,004 |
Charged to Costs and Expenses | 5,808 | 1,103 | 4,501 |
Deductions | (6,177) | (1,335) | (5,582) |
Balance at End of Year | 4,322 | 4,691 | 4,923 |
Valuation allowance on deferred taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 17,205 | 17,173 | 18,991 |
Charged to Costs and Expenses | 58,255 | 32 | 517 |
Deductions | 0 | 0 | (2,335) |
Balance at End of Year | $ 75,460 | $ 17,205 | $ 17,173 |
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